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Can someone explain the Solow equation in this context? Suppose for the economy of Pluto, its average annual growth rates from 1995 to 2005 for
Can someone explain the Solow equation in this context?
Suppose for the economy of Pluto, its average annual growth rates from 1995 to 2005 for
potential GDP was 6.31% per year, labour force was 3% per year and capital stock was 2.4%
per year. Also assume that the share of labour income in national income is always 2/3. What is the growth in productivity as measured by the
Solow growth residual?
Thank you,
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