Suppose the per-worker production function is:y = A(1-ga)Where ga is the fraction of all workers that produce technologies. Further, suppose the growth of technology is given by thefollowing equationgrowth of A = (ga/m)(L)Suppose L = 1 and m = 7, and that initially ga = 0.7. If g, fell to 0.8 the level of output per worker would:Impossible to sayfallstay the sameO rise

The production function of a venture is a relationship between inputs used and yield made by an…

y = A(1-ga) ere ga is the fraction of all workers that produce technologies. Further, suppose the growth of technology is given by the owing equation growth of A = (ga/m)(L) pose L = 1 and m = 7, and that initially g,A = 0.7. If g, fell to 0.8 the level of output per worker would: Impossible to say fall stay the same rise

y = A(1-ga) ere ga is the fraction of all workers that produce technologies. Further, suppose the growth of technology is given by the owing equation growth of A = (ga/m)(L) pose L = 1 and m = 7, and that initially g,A = 0.7. If g, fell to 0.8 the level of output per worker would: Impossible to say fall stay the same rise

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose labor productivity increased by 4% last year. If technological progress was 3%, by how much must have the capital-to-labor ratio increased? A) 3%. B) 2%. C) 1%. D) 0%.
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The Solow model is an important formal model of economic growth. Assume that the production function is Y = F(K,N) = zK° N¹-a, where 0 < a < 1. Production is constant returns to scale. We use lowercase to denote variables in per capita terms.
Q4. Exponential growth means that b is. O =1 O none of these O >1 O <1
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