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In 2000 GDP per capita was 14.2, capital/output was 3.5, human capital

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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Question

In 2000 GDP per capita was 14.2, capital/output was 3.5, human capital was 3.6. In 2010 GDP per capita was 20.3, capital/output 4.8, human capital was 4.4. In both years the production function is Cobb-Douglas with a value for alpha of 0.4. What was the ratio of GDP per capita in 2010 to 2000 due *just* to the change in the capital/output ratio? Use 2 decimal places.

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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