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in Longland, described in problem 3, capital per hour of labor in 2004 was $40 and real GDP hour of labor was $8.31. In 2006,
in Longland, described in problem 3, capital per hour of labor in 2004 was $40 and real GDP hour of labor was $8.31. In 2006, capital per hour of labor was $50 and real GDP per hour of labor was $10.29 an hour. Does Longland experience diminishing returns? Explain why or why not. per hour of Jabor was $10.29 an hour. .Does Longland experience diminishing returns? Explain why or why not. b. Use growth accounting to find the contribu- tion of capital growth between 2004 and 2006 to labor productivity growth. c. Use growth accounting to find the contribu- tion of technological change between 2004 and 2006 to labor productivity growth
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