Consider an economy at its steady state. Assuming technical progress is growing at rate of 4%, capital stock is growing at 5% and labor share of income is 70%. (a) Find the contribution of capital and labor to output growth. (b) Find the total factor productivity.

Consider an economy at its steady state. Assuming technical progress is growing at rate of 4%, capital stock is growing at 5% and labor share of income is 70%. (a) Find the contribution of capital and labor to output growth. (b) Find the total factor productivity.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter16: Economic Growth

Section: Chapter Questions

Problem 5E

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