1. The following table shows the data for Canada's aggregate production function with constant return to scale and the output elasticity with respect to capital equal to 0.3. GDP (billions of 2002 dollars) Capital Stock (billions of 2002 dollars) Year Employment (millions) 1961 264.5 525.6 6.06 1971 437.7 824.7 8.08 1981 647.3 1277.4 11.31 1991 808.1 12.86 1715.1 2001 1120.1 2071.1 14.94 2010 1325 2668.7 17.04 a). Find the values of total factor productivity for the given years above. b). Complete the following table by calculating the average annual growth rates (%) for GDP, capital stock, employment, and total factor productivity. While it is not necessary to show all your calculations, show the formulae you use, and also explain and illustrate how you obtain your answers Capital Stock Year GDP Employment TFP 1961-1971 1971-1981 1981-1991 a). Find the values of total factor productivity for the given years above. b). Complete the following table by calcul ating the average annual growth rates (%) for GDP, capital stock, employment, and total factor productivity. While it is not necessary to show all your calculations, show the formulae you use, and also explain and illustrate how you obtain your answers GDP Employment TFP Year Capital Stock 1961-1971 1971-1981 1981-1991 1991-2001 2001-2010 c). Can you find in your above table a stylized fact, if any, that is also observed in other industrial countries during 1971-81? Relative to the other periods in the table, did output grow at reasonably high rate during this period? If so, what was the driving force? d). Did output during 1991-2001 grow faster than the previous decade? What was the driving force behind the growth during this period? e). Which decade has the lowest output growth? Explain concisely 1. The following table shows the data for Canada's aggregate production function with constant return to scale and the output elasticity with respect to capital equal to 0.3. GDP (billions of 2002 dollars) Capital Stock (billions of 2002 dollars) Year Employment (millions) 1961 264.5 525.6 6.06 1971 437.7 824.7 8.08 1981 647.3 1277.4 11.31 1991 808.1 12.86 1715.1 2001 1120.1 2071.1 14.94 2010 1325 2668.7 17.04 a). Find the values of total factor productivity for the given years above. b). Complete the following table by calculating the average annual growth rates (%) for GDP, capital stock, employment, and total factor productivity. While it is not necessary to show all your calculations, show the formulae you use, and also explain and illustrate how you obtain your answers Capital Stock Year GDP Employment TFP 1961-1971 1971-1981 1981-1991 a). Find the values of total factor productivity for the given years above. b). Complete the following table by calcul ating the average annual growth rates (%) for GDP, capital stock, employment, and total factor productivity. While it is not necessary to show all your calculations, show the formulae you use, and also explain and illustrate how you obtain your answers GDP Employment TFP Year Capital Stock 1961-1971 1971-1981 1981-1991 1991-2001 2001-2010 c). Can you find in your above table a stylized fact, if any, that is also observed in other industrial countries during 1971-81? Relative to the other periods in the table, did output grow at reasonably high rate during this period? If so, what was the driving force? d). Did output during 1991-2001 grow faster than the previous decade? What was the driving force behind the growth during this period? e). Which decade has the lowest output growth? Explain concisely
