Output in an economy is given by the production function, Y=A (UKK) 0.30 (UN) 0.70, where Y is output and A measures productivity. The capital stock K is fixed at 37, and employment N is fixed at 92. The utilization rates of capital and labor equal 1 in both 2012 and 2013. Output equals 104 in 2012 and equals 110.24 in 2013. The values of the Solow residual as measured by the parameter A are found to be 1.4857 in 2012 and 1.5748 in the year 2013. Thus the growth rate of the Solow residual is 6.00%. Now suppose that betweeen 2012 and 2013, utilization of both capital and labor each increase by 4%. Output in 2013 is 110.24, as it was above. Calculate the new measure of A in the year 2013:. (Enter your response rounded to four decimal places.)

Output in an economy is given by the production function, Y=A (UKK) 0.30 (UN) 0.70, where Y is output and A measures productivity. The capital stock K is fixed at 37, and employment N is fixed at 92. The utilization rates of capital and labor equal 1 in both 2012 and 2013. Output equals 104 in 2012 and equals 110.24 in 2013. The values of the Solow residual as measured by the parameter A are found to be 1.4857 in 2012 and 1.5748 in the year 2013. Thus the growth rate of the Solow residual is 6.00%. Now suppose that betweeen 2012 and 2013, utilization of both capital and labor each increase by 4%. Output in 2013 is 110.24, as it was above. Calculate the new measure of A in the year 2013:. (Enter your response rounded to four decimal places.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 1.3CE: Logarithms are especially useful for comparing series with two divergent scales since 10 percent...

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