Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a country's labor and capital grow at the same rate, is this likely to have the same impact on the growth rate of output?

image text in transcribedimage text in transcribedimage text in transcribed
If a country's labor and capital grow at the same rate, is this likely to have the same impact on the growth rate of output? 0 Yes. If labor and capital are growing at the same rate, the impact on the growth rate of output is the same. 0 No. Growth in labor always has a bigger impact than growth in capital. 0 No. Growth in capital always has a bigger impact than growth in labor. 0 It depends on whether the capital share of output is larger than the labor share of output. \fEven though many rich countries already have very high levels of physical and human capital, they are able to continuously grow because they: 0 have higher per capita income. 0 have higher levels of real GDP growth. 0 trade with other rich countries. 0 can continuously increase any of the components that lead to productivity growth

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Economics

Authors: Barry Field, Martha K Field

5th Edition

0073375764, 9780073375762

More Books

Students also viewed these Economics questions