Suppose labor's share of output is 70% and capital's share of output is 30%. The country finds that its output grew at a rate of 3.4% during the past year, its labor force grew by 2%, and its capital grew by 3%. In this case, labor contributed ☐ % to the growth of output, capital contributed % to the growth of output, and the implied rate of growth in technology was %. Instructions: Enter numbers rounded to one decimal place in each box.

Suppose we measure labor productivity by the amount of output (horizontal axis) per unit pf physical capital per worker (vertical axis) when everything else is constant. A more effective training program is provided to all workers. With all else equal, what change can we expect on the labor productivity plot? a. An upward movement along the labor productivity curve. b. A downward movement along the labor productivity curve. c. An upward shift of the labor productivity curve. d. A downward shift of the labor productivity curve. e. The labor productivity curve will remain unchanged.

a) Consider an economy in which the labour force grows by 2.7 percent per annum, while the capital stock grows by 4 percent per annum. Suppose 55 percent of national income goes to labour and 45 percent to capital. i. If the residual were R = 0, what rate of growth would the economy achieve? Calculate the value of the residual (R) if the country's actual rate of growth has been 4.5 percent ii. per annum. b) Suppose that a developing economy can be modeled with the Solow growth model. The constant returns to scale production technology is: Y(t) = K(t)“ H(1)* (A(t)L(t))* Where Y(t) is output, K(t) is physical capital, H(t) is human capital, A(t) is the level of technology, and L(t) is labour. The parameters a, º and A are positive and there is perfect competition in the markets for output and the inputs. Assume that during the 2005-2018 period, the country's growth rate averaged 8.5 percent and a recent growth-accounting study showed that the residual accounted for only 1.2 percent of…

0.5 0.5 Given a production function: Y = AK N If output grows at 5%, capital grows at 2% and the number of workers grows at 4%, then technology (or total factor productivity) grows at % ? (Answer in integer only, no decimal place.) Your Answer: Answer Given a production function: Y = AK0.5 N0.5. If output grows at 5%, capital grows at 2% and the number of workers grows at 4%, then technology (or total factor productivity) grows at %? (Answer in integer only, no decimal place.) Your Answer: Answer

Country A and country B both have the production function Y = F(K, L) = K^0,5L^0,5 A. Does this production function have constant returns to scale? Explain. B. What is the per-worker production function, y = f(k)? C. Assume that neither country experiences population growth or technological progress and that 5 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 20 percent of output each year. Using your answer from part (b) and the steady-state condition that investment equals depreciation, find the steady-state level of capital per worker for each country. Theen find the steady-state levels of income per worker and consumption per worker. D. Suppose that both countries start off with a capital stock per worker of 2. What are the levels of income per worker and consumption per worker? Remembering that the change in the capital stock is investment less depreciation, use a calculator or a computer spreadsheet…

1. O LounchPad • Country A and country B both have the production function Y = F(K, L) = K/³L²/3. a. Does this production function have constant returns to scale? Explain. b. What is the per-worker production function, y = f(k)? c. Assume that neither country experiences population growth or technological progress and that 20 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 30 percent of output each year. Using your answer from part (b) and the steady-state condition that investment equals depreciation, find the steady-state level of capital per work- er for each country. Then find the steady-state levels of income per worker and consumption per worker. d. Suppose that both countries start off with a capital stock per worker of 1. What are the levels of income per worker and consumption per worker?

Assume that a country's production function is Y = K/2*L/2 and there is no population growth or technological change. a. What is the per-worker production function y = f (k)? b. Assume that the country possesses 40,000 units of capital and 10,000 units of labor. What is Y? What is labor productivity computed from the per-worker production function? Is this value the same as labor productivity computed from the original production function? c. Assume that 10 percent of capital depreciates each year. What gross saving rate is necessary to make the given capital-labor ratio the steady-state capital-labor ratio? (Hint: In a steady state with no population growth or technological change, the saving rate multiplied by per-worker output must equal the depreciation rate multiplied by the capital- labor ratio.)

1. Country A and B both have the production functionY = F (K, L) = K ½L ½or Y = K0.5 L0.5 a) What is the per-worker production function, y= f (k)? Please make sure to write specificfunctional form of the per-worker production function. b) Assume that neither country experiences population growth nor technological progressand that 4 percent of capital depreciates each year. Assume further that country A saves 24percent of output each year and country B saves 16 percent of output each year. Using youranswer from part a) and the steady-state condition, find the steady-state level of capital perworker for each country. Then find the steady-state levels of income per worker for eachcountry and steady-state level of consumption per worker for each country.

-1 Consider the production function Y₁ = A₁K¹/2L1/2 where A is total factor productivity (TFP), It is the labour force, and K is physical capital. If the growth rate of capital per worker is 3% per year and the growth rate of output per worker is 3% per year, the growth rate of TFP is? 1.5% per year Unsure, it depends on the growth rate of the labour force 0.5% per year O 1.0% per year

Which of the following statements about labour productivity (Y/L), also known as the average product of labour are correct? Select one or more: a. A rise in labour productivity must imply job losses b. If Y is fixed A rise in labour productivity must imply job losses c. With a standard production function, if L falls, without any change in technology or capital intensity, labour productivity must rise d. A rise in labour productivity at the same time as a rise in employment is logically impossible