Question 1 An economy is represented by the Cobb-Douglas production function, Y = AK°L1-0 A. Derive the economy's output growth accounting equation. B. If the share of capital is 0.35, capital grows by 2%, labour grows by 2%, and the growth rate of total factor productivity is 1%, by how much does total output grow? C. Derive the economy's per capita output growth accounting equation. D. Drawing on the information provided in part B and your calculations in part B, what is the rate of growth of per capita output?

Question 1 An economy is represented by the Cobb-Douglas production function, Y = AK°L1-0 A. Derive the economy's output growth accounting equation. B. If the share of capital is 0.35, capital grows by 2%, labour grows by 2%, and the growth rate of total factor productivity is 1%, by how much does total output grow? C. Derive the economy's per capita output growth accounting equation. D. Drawing on the information provided in part B and your calculations in part B, what is the rate of growth of per capita output?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 5P

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My courses / ECON202-20202 / My Assessments / MIDTERM EXAM If the US has an average growth rate is 2.1% and South Korea has an average growth rate of 5.%, then South Korea is experiencing of O a. a slower economic growth than the US. b. no economic growth. estion O c. the same economic qrowth as the US. O d. a faster economic growth than the US. Next page A Chapter 6 In Class Practice Jump to... eu are logged in as ABDULRAHMAN ALSAEEM (Log out) Copyright © 2020 All Rights Reserved. MacBook Pro @ 2# % & 2 3 4 5 7 8 A E R T Y ض ق そ A S » G H. J K V B i く 6. つつ > *3
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(b) Which country has the highest growth rate of GDP per capita in 2024?
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Economic Growth II – Work It Out Question 1 a. At what rates do total output and output per worker grow? An economy has a Cobb–Douglas production function: Y = K"(LE)'-a Total output growth rate: % The economy has a capital share of 0.20, a saving rate of 41 percent, a depreciation rate of 3.50 percent, a rate of population growth of 6.25 percent, and a rate of labor- augmenting technological change of 2.0 percent. It is in Output per worker growth rate: % steady state. Output per effective worker declines in the steady state. increases in the steady state. is constant in the steady state and does not change.
AK.25L.75 population growth = 3% saving rate=5% depreciation = 12% technology= 9 a. calculate steady state level of output per worker b. calculate steady stae level of consumption per worker c. calculate real GDP's growth rate in the steady state