Consider the following data, which apply to countries A and B in the years 2000 and 2010.

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Consider the following data, which apply to countries A and B in the years 2000 and 2010.

In both countries, the production function

(in per-worker terms) is y = Akah1-a, where a = 1/3.

Which country had higher productivity growth between 2000 and 2010? Show how you got your answer. (You do not need to use a calculator to answer this question.)

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Economic Growth

ISBN: 398458

3rd International Edition

Authors: David N Weil

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