Suppose k grows at a rate $\bar { g } _ { k } = 3$ percent and l grows at a rate $\bar { g } _ { i } = 9$
Percent. If $y = k ^ { 1 / 3 } l ^ { 1 / 3 }$,
Then y grows at:
A) 3 percent
B) 4 percent
C) -3 percent
D) 12 percent
E) -4 percent

Question

Quizplus · Accepted Answer

The growth rate of y can be found using the formula for the growth rate of a product of powers: $\bar{g}_y = \frac{1}{3} \bar{g}_k + \frac{1}{3} \bar{g}_l = \frac{1}{3} \times 3 + \frac{1}{3} \times 9 = 1 + 3 = 4$ percent.

Suppose K Grows at a Rate gˉk=3\bar { g } _ { k } = 3gˉ​k​=3

Suppose K Grows at a Rate $\bar { g } _ { k } = 3$