The declining labour share, which is expected to continue in the future, implies that Australia will experience faster economic growth (growth in GDP per capita) in the future. Assuming that the production function in Australia is the Cobb-Douglas production function, do you agree or disagree with this statement? Explain your reasoning.

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter16: Economic Growth
Section: Chapter Questions
Problem 15E
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The declining labour share, which is expected to continue in the future, implies that Australia will experience faster economic growth (growth in GDP per capita) in the future.

Assuming that the production function in Australia is the Cobb-Douglas production function, do you agree or disagree with this statement? Explain your reasoning.

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