Output per worker in the economy depends on the capital/labour ratio and the state of technology. The per worker production function Y/L = Ax(K/L)^1/3.
If the capital-labour ratio grows by 6% and output per worker grows by 2%, what will be the growth of total factor productivity?

Question

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The Answer of Output per worker in the economy depends on the capital/labour ratio and the state of technology. The per worker production function Y/L = Ax(K/L)^1/3. If the capital-labour ratio grows by 6% and output per worker grows by 2%, what will be the growth of total factor productivity?

Output Per Worker in the Economy Depends on the Capital/labour