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Question 1: Capital Share of Output. GDP is $3,600. Labor compensation is $2,700. What is , capital's share of output? Question 2: Solow Growth Rates.
Question 1: Capital Share of Output. GDP is $3,600. Labor compensation is $2,700. What is , capital's share of output?
Question 2: Solow Growth Rates. The Solow measure of productivity is rising 4% per year. Labor is growing 3%. Capital is growing 5%. GDP is $100 million. Total payments to labor are $60 million. How fast is output per worker growing? (Give your answer in the form of 6.2 for 6.2%.) (Hint: What is the factor share of labor in output?)
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