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Question 163

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Answer the questions below:
(A)Suppose a country has no growth in technology, the capital stock is growing at a rate of 4 percent per year, and the labor force is growing at a rate of 1 percent per year. What is the growth rate of real GDP per hour of work?
(B)Suppose a country has a capital stock that is growing at 1 percent, the labor force is growing at 4 percent, and the growth of real GDP per hour of work is 2 percent. What is the growth rate of technology? Which if the growth rate of real GDP?

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(A)In this problem, it is helpful to use...

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