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Question 2. Analytical problems 6, Chapter 6, page 241 of the 8th edition of the textbook, pages 239 of the 9th edition of the textbook,
Question 2. Analytical problems 6, Chapter 6, page 241 of the 8th edition of the textbook, pages 239 of the 9th edition of the textbook, page 246 in the 10th edition of the textbook. Suppose that total capital and labor both increase by the same percentage amount, so that the amount of capital per worker, k, doesn't change. Writing the production function in per-worker terms, y = f(k), requires that this increase in capital and labor must not change the amount of output produced per *Econ-UG 12-001, Intermediate Macroeconomics, Fall 2021, Jess Benhabib. worker, y. Use the growth accounting equation to show that equal percentage increases in capital and labor will leave output per worker unaffected only if ax + ax = 1. NOTE: ax and an are the capital and labor exponents of the Cobb-Douglas production function and represents the factor shares. See equation (6.2) of the textbook (8ed, 9ed,10ed) for more
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