Consider Country A with national savings rate 24% and capital-output ratio 4. The economy suffers violent labour strikes every year, so that whatever the capital stock in any given year, a third of it goes unused because of these labour disputes. If population growth is 2% per year, calculate the rate of growth of per capita income

Consider Country A with national savings rate 24% and capital-output ratio 4. The economy suffers violent labour strikes every year, so that whatever the capital stock in any given year, a third of it goes unused because of these labour disputes. If population growth is 2% per year, calculate the rate of growth of per capita income

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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