Consider an economy with a two-variable production function with labour-income-share at 2/3 and capital-income-share at 1/3. If capital and technology remain constant and if L grows at 3%, the growth of real GDP will be:
A) 0.667%.
B) 1.667%.
C) 2%.
D) 3%.
Correct Answer:
Verified
Q19: In terms of 'growth accounting' the sources
Q20: The Solow residual is:
A) the difference between
Q21: The Solow residual found by the growth
Q22: According to the growth accounting methodology, total
Q23: If the labour-income is 2/3 of national
Q25: Consider an economy with a two-variable production
Q26: Labour inputs can be used to increase
Q27: All of the following are important sources
Q28: In explaining sustained growth in potential output
Q29: Constant returns to scale occur whenever all
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents