Countries X and Z produce a composite output Y by employing two factors labor (N) and capital (K), when the given state of technology is A. The production function of Y is Y=√(K)(AN) In a particular year, Country X's growth rate of output per worker is 4.2%, growth rate of employment is 3.1%, and growth rate of capital is 3.9%. In the same year, Country Z's growth rate of output per worker is 7%, growth rate of employment is 1%, and growth rate of capital is 8%. What is the growth rate of technological progress for the two countries? (Round your responses to two decimal places.) Country X: 9Ax=% Country Z: GAZ = Given the above information, which combinations of the following statements are true? a) Country X and Country Z are investing heavily in innovation and R&D. b) Country X has achieved its balanced growth path. c) Country Z could be using a combination of heavy capital formation and import of technology. d) Country Z has a higher standard of living than Country X. O A. a, b and c OB. b and c ----

Countries X and Z produce a composite output Y by employing two factors labor (N) and capital (K), when the given state of technology is A. The production function of Y is Y=√(K)(AN) In a particular year, Country X's growth rate of output per worker is 4.2%, growth rate of employment is 3.1%, and growth rate of capital is 3.9%. In the same year, Country Z's growth rate of output per worker is 7%, growth rate of employment is 1%, and growth rate of capital is 8%. What is the growth rate of technological progress for the two countries? (Round your responses to two decimal places.) Country X: 9Ax=% Country Z: GAZ = Given the above information, which combinations of the following statements are true? a) Country X and Country Z are investing heavily in innovation and R&D. b) Country X has achieved its balanced growth path. c) Country Z could be using a combination of heavy capital formation and import of technology. d) Country Z has a higher standard of living than Country X. O A. a, b and c OB. b and c ----

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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