Question
Use growth accounting to estimate known and unknown growth. The labor force grows at 9% and capital stock grows 3%. Suppose 25% of national income
Use growth accounting to estimate known and unknown growth. The labor force grows at 9% and capital stock grows 3%. Suppose 25% of national income goes to labor and 75% goes to capital. Output grows by 7%.
What percent of the growth rate of output can be explained by unknown growth?
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
