Over the following year assume that labor grows at a rate of 1.1%, capital grows

at a rate of 1.2%, and technology grows at a rate of 2%. Based on the income

equation, Y = 1.08 L

.70

K

.30

, calculate the numerical value of

Y / Y. Show your

calculations using a decimal format. A growth rate of 5% would be .05.

Y / Y =

Based on the above calculations, how much will we estimate Y to be next year?