Write out the equation for output growth with capital, labor and total factor productivity as determinants of growth. Suppose that the shares of capital and labor are respectively 0 .3 and 0.7. If labor supply grows by 10% what would be the growth rate of output assuming that there is no change in the other determinants? What would happen to per capita output if labor supply growth is entirely due to population growth?
Write out the equation for output growth with capital, labor and total factor productivity as determinants of growth. Suppose that the shares of capital and labor are respectively 0 .3 and 0.7. If labor supply grows by 10% what would be the growth rate of output assuming that there is no change in the other determinants? What would happen to per capita output if labor supply growth is entirely due to population growth?
Chapter16: Economic Growth
Section: Chapter Questions
Problem 5E
Related questions
Question
Write out the equation for output growth with capital, labor and total factor productivity
as determinants of growth. Suppose that the shares of capital and labor are respectively
0 .3 and 0.7. If labor supply grows by 10% what would be the growth rate of output
assuming that there is no change in the other determinants? What would happen to per
capita output if labor supply growth is entirely due to population growth?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning