Question
How would you suggest evaluating this statement Given the following information :For a country over a decade: The value of alpha in the Cobb-Douglas production
How would you suggest evaluating this statement
Given the following information:For a country over a decade:
The value of alpha in the Cobb-Douglas production function was 0.6.
The average annual growth rate of capital productivity (Y/K) was zero.
The average annual growth rate of labor was 2 percent.
The national saving rate was 0.22.
The rate of depreciation of the capital stock was 0.11.
The annual nominal GDP had increased from an initial $4,000 billion to a final $4,840 during the decade.
Product price inflation averaged a little less than one percent per year.
Statement to evaluate:During this decade, TFP increased for this country.
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