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If the Aggregate Production Function for the Economy Is Y

Question 112

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If the aggregate production function for the economy is Y = A x L1/2K1/2 and we observe a 5% growth in the labour force, a 7% growth in capital stock and a growth in real GDP of 8%, what contribution to growth was made by improvements in technology that changed to total factor productivity?

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Using growth accounting DA/A =...

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