The production function used by the Australian Bureau of Statistics is written Y = AK L rY where Y is aggregate output, A is total-factor productivity, K is aggregate capital, L is the size of the labor force, I is aggregate intermediate input (e.g., energy, material), and the exponents are constants. Given this production function, which of the following expressions correctly represents the growth rate of per-capita income, 9Y? = gA + agK + BgL + Y9I = gA + agk + (1 – B) gL +ygı = 9A + agk + (B– 1) gL +Yg1 O None of the choices given is correct.

The production function used by the Australian Bureau of Statistics is written Y = AK L rY where Y is aggregate output, A is total-factor productivity, K is aggregate capital, L is the size of the labor force, I is aggregate intermediate input (e.g., energy, material), and the exponents are constants. Given this production function, which of the following expressions correctly represents the growth rate of per-capita income, 9Y? = gA + agK + BgL + Y9I = gA + agk + (1 – B) gL +ygı = 9A + agk + (B– 1) gL +Yg1 O None of the choices given is correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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