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Recall the exercises from Chapter 3 and 4. Assume that output Y increases bygY percentandlaborLincreasesbygLpercent.Byhowmuchdoestheoutputpercapita, defined as y = Y/L, increase? Denote this percentage increase
Recall the exercises from Chapter 3 and 4. Assume that output Y increases bygY percentandlaborLincreasesbygLpercent.Byhowmuchdoestheoutputpercapita, defined as y = Y/L, increase? Denote this percentage increase as gy (notice the distinction between gy and gY ). Answer the same question also for the growth rate of capital per capita gk, expressed as a function of the growth rate of total capital gK and the growth rate of labor gL (again notice the distinction between gk and gK)
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