Consider the production function Y₁ = A₂K¹/21/2where A is total factor productivity (TFP), Lt 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?

Consider the production function Y₁ = A₂K¹/21/2where A is total factor productivity (TFP), Lt 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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5.2
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