Machittan Lea Population Growth and Technological Progress - Work It Out An economy has a Cobb-Douglas production function: Y = Ka(LE)-a The economy has a capital share of 0.25, a saving rate of 45 percent, a depreciation rate of 4.75 percent, a rate of population growth of 6.00 percent, and a rate of labor-augmenting technological change of 3.5 percent. It is in steady state. a. At what rates do total output and output per worker grow? Total output growth rate: Output per effective worker is constant in the steady state and does not change. declines in the steady state. increases in the steady state. % Output per worker growth rate: % de
Machittan Lea Population Growth and Technological Progress - Work It Out An economy has a Cobb-Douglas production function: Y = Ka(LE)-a The economy has a capital share of 0.25, a saving rate of 45 percent, a depreciation rate of 4.75 percent, a rate of population growth of 6.00 percent, and a rate of labor-augmenting technological change of 3.5 percent. It is in steady state. a. At what rates do total output and output per worker grow? Total output growth rate: Output per effective worker is constant in the steady state and does not change. declines in the steady state. increases in the steady state. % Output per worker growth rate: % de
Chapter1: Making Economics Decisions
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Population Growth and Technological Progress - Work It Out
An economy has a Cobb-Douglas production function:
Y = Ka (LE)-a
The economy has a capital share of 0.25, a saving rate of 45 percent, a depreciation rate of 4.75 percent, a rate of population
growth of 6.00 percent, and a rate of labor-augmenting technological change of 3.5 percent. It is in steady state.
a. At what rates do total output and output per worker grow?
Total output growth rate:
Output per effective worker
O is constant in the steady state and does not change.
O declines in the steady state.
increases in the steady state.
%
Output per worker growth rate:
%
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