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Suppose you have the following information about an economy: Average annual rates of growth from 2000 to 2010: Potential GDP 4.81% Labour Force 1.2% Capital
Suppose you have the following information about an economy:
Average annual rates of growth from 2000 to 2010:
Potential GDP 4.81%
Labour Force 1.2%
Capital Stock 2.7%
Share of labour income in national income: 2/3
Using growth accounting, find the contributions to the annual growth in potential GDP that came from:
Note:Make sure your answers are in percentage form and rounded to two decimal places.
A) Growth in Labour Force %?
B) Growth in Capital stock %?
C) Improved productivity as measured by the Solow residual %?
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