Output in an economy is given by the production function, Y=A (UKK) 0.30 (UN) 0.70, where Y is output and A measures productivity. The capital stock K is fixed at 37, and employment N is fixed at 92. The utilization rates of capital and labor equal 1 in both 2012 and 2013. Output equals 104 in 2012 and equals 110.24 in 2013. The values of the Solow residual as measured by the parameter A are found to be 1.4857 in 2012 and 1.5748 in the year 2013. Thus the growth rate of the Solow residual is 6.00%. Now suppose that betweeen 2012 and 2013, utilization of both capital and labor each increase by 4%. Output in 2013 is 110.24, as it was above. Calculate the new measure of A in the year 2013:. (Enter your response rounded to four decimal places.)
Output in an economy is given by the production function, Y=A (UKK) 0.30 (UN) 0.70, where Y is output and A measures productivity. The capital stock K is fixed at 37, and employment N is fixed at 92. The utilization rates of capital and labor equal 1 in both 2012 and 2013. Output equals 104 in 2012 and equals 110.24 in 2013. The values of the Solow residual as measured by the parameter A are found to be 1.4857 in 2012 and 1.5748 in the year 2013. Thus the growth rate of the Solow residual is 6.00%. Now suppose that betweeen 2012 and 2013, utilization of both capital and labor each increase by 4%. Output in 2013 is 110.24, as it was above. Calculate the new measure of A in the year 2013:. (Enter your response rounded to four decimal places.)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
Problem 1.3CE: Logarithms are especially useful for comparing series with two divergent scales since 10 percent...
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![Output in an economy is given by the production function,
Y=A
= A (UKK) 0.30 (UNN) 0.70,
where Y is output and A measures productivity. The capital stock K is fixed at 37, and employment N is fixed at 92. The utilization rates of capital
and labor equal 1 in both 2012 and 2013. Output equals 104 in 2012 and equals 110.24 in 2013. The values of the Solow residual as measured by
the parameter A are found to be 1.4857 in 2012 and 1.5748 in the year 2013. Thus the growth rate of the Solow residual is 6.00%.
Now suppose that betweeen 2012 and 2013, utilization of both capital and labor each increase by 4%. Output in 2013 is 110.24, as it was above.
Calculate the new measure of A in the year 2013: . (Enter your response rounded to four decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b719f4c-b890-4db8-ac16-88dcc60a450d%2F4a1bf420-16be-4661-9b2d-c9ba3be24cdc%2Fdjfxl7h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Output in an economy is given by the production function,
Y=A
= A (UKK) 0.30 (UNN) 0.70,
where Y is output and A measures productivity. The capital stock K is fixed at 37, and employment N is fixed at 92. The utilization rates of capital
and labor equal 1 in both 2012 and 2013. Output equals 104 in 2012 and equals 110.24 in 2013. The values of the Solow residual as measured by
the parameter A are found to be 1.4857 in 2012 and 1.5748 in the year 2013. Thus the growth rate of the Solow residual is 6.00%.
Now suppose that betweeen 2012 and 2013, utilization of both capital and labor each increase by 4%. Output in 2013 is 110.24, as it was above.
Calculate the new measure of A in the year 2013: . (Enter your response rounded to four decimal places.)
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