Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose technology remains constant while labour force grew at a rate of 2.8 percent a year, capital stock grew at 1.7 percent per year, and

Suppose technology remains constant while labour force grew at a rate of 2.8 percent a year, capital stock grew at 1.7 percent per year, and the share of labour income in national income was 60 percent, how fast would potential GDP grow?

Note: Keep as much precision as possible during your calculations. Your final answer should be in percentage form and accurate to at least two decimal places.

Please answer with full explanation, thank you !

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Horngren, Harrison, Oliver

3rd Edition

978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978

Students also viewed these Economics questions