Buppose two countries have the same growth rates of the capital and labor input stocks. These factors contribute 2 percentage points to their respective countries' total output growth rates. Output growth rates are 3.5% for country 1 and 5.5% for country 2. Assume the production function is: Y = AK^.3L^.7 What is the productivity growth rate for country 1?_ %. (Enter your response rounded to one decimal places.) What is the productivity growth rate for country 2?_ %. (Enter your response rounded to one decimal places.)
Buppose two countries have the same growth rates of the capital and labor input stocks. These factors contribute 2 percentage points to their respective countries' total output growth rates. Output growth rates are 3.5% for country 1 and 5.5% for country 2. Assume the production function is: Y = AK^.3L^.7 What is the productivity growth rate for country 1?_ %. (Enter your response rounded to one decimal places.) What is the productivity growth rate for country 2?_ %. (Enter your response rounded to one decimal places.)
Chapter20: Economic Growth In The Global Economy
Section: Chapter Questions
Problem 5P
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