Question
1. In the sources-of-growth equation, suppose that capital is growing at 9% and labor is growing at 3% and there is no growth in total
1. In the sources-of-growth equation, suppose that capital is growing at 9% and labor is growing at 3% and there is no growth in total factor productivity. If the capital share is 1/3 and the labor share is 2/3, how fast is total output growing?
2. In the sources-of-growth equation, suppose that capital is growing at 6% and labor is growing at 3% and total factor productivity is growing at 2%. If the capital share is 1/3 and the labor share is 2/3, how fast is total output growing?
3. In the sources-of-growth equation, suppose capital is growing at 12%, labor is not growing at all, and total output is growing at 7%. If the capital share is 1/3 and the labor share in 2/3, what is the rate of growth of total factor productivity?
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Operations Management Processes And Supply Chains
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
13th Global Edition
129240986X, 978-1292409863
