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Use the data in the exhibit to complete the two tasks below. Exhibit: Factors of Production Data Period Y K L Share of Labor in
Use the data in the exhibit to complete the two tasks below. Exhibit: Factors of Production Data Period Y K L Share of Labor in Output 100 200 100 0.5 106 205 102 0.5 W 111 210 104 0.5 110.5 215 104 0.5 U 110 220 104 0.5 a. Compute and report the value of growth in total factor productivity ((Ar At 1)/At 1) in each period from periods 2 through 5. Assume that the value of A is 1.000 in period 1. Report the value of A in each period. b. Does the value of A rise in each period? If it declines, do you think this decline is because technological progress works backward? If so, explain your answer. If not, provide another explanation
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