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Really need help with this economics question. A detailed explanation would be great! Thanks in advance! Suppose the productiOn function is given by Y =

Really need help with this economics question. A detailed explanation would be great! Thanks in advance!

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Suppose the productiOn function is given by Y = ZKO'36N0'64. Consider the following data Mmillions) 31438 32338. 4 33307. 7 - 190274. 7 34428 10770. 7 35679 11216.4 11337.5 11543.1 2003 1 1836.4 40323 2004 12246.9 41471 2005 12623 12958.5 13206.4 (1) Calculate the Solow residual for each year from 1995 to 2007 (hint: don't convert millions to billions or vice versa). (2) Calculate percentage rates of grwoth in output, capital, employment, and total factor pro- ductivity for the year 1996 to 2007. Overall, what factor contributes the least to the growth in aggregate output? Do you see that the 2001 recession makes the growth of GDP slower (in other words, is the growth rate in years 2001-2007 higher or lower than the years 1996-2000)? (Note: use the log-difference to calculate the growth rates)

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