Chapter 7: Growth accounting Assume: Yı = 1000 K1 = 2500 LF1= 500 Y2 = 1300 K2= 3250 LF2=575 g = 30% gk = 30% gL = 15% Assume 30% of national income goes to capital, and 70% goes to labour. Calculate the residual. A) B) if wk = 0.5 and wL = 0.5, calculate the residual. C) if wk = 0.5 and wL = 0.5, and a = 0.105, calculate g

Chapter 7: Growth accounting Assume: Yı = 1000 K1 = 2500 LF1= 500 Y2 = 1300 K2= 3250 LF2=575 g = 30% gk = 30% gL = 15% Assume 30% of national income goes to capital, and 70% goes to labour. Calculate the residual. A) B) if wk = 0.5 and wL = 0.5, calculate the residual. C) if wk = 0.5 and wL = 0.5, and a = 0.105, calculate g

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter13: Measuring The Economy's Performance

Section13.1: National Income Accounting

Problem 5R

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