Suppose k and l grow at constant rates given by $\bar { g } _ { k }$ and $\bar { g } _ { l }$'
What is the growth rate of y if $y = k ^ { a } / l ^ { ( 1 - a ) } , a 0 ?$
A) $g _ { y } = \bar { g } _ { k } ^ { a } + g _ { l } ( 1 - a )$
B) $g _ { y } = a \left( \bar { g } _ { k } + \bar { g } _ { l } \right)$
C) $g _ { y } = a \bar { g } _ { \ell } + ( 1 - a ) \bar { g } _ { l }$
D) $g _ { y } = a \bar { g } _ { \ell } - ( 1 - a ) \bar { g } _ { l }$
E) $g _ { y } = a \bar { g } _ { k } / ( 1 - a ) \bar { g } _ { l }$

Question

Suppose k and l grow at constant rates given by $\bar { g } _ { k }$ and $\bar { g } _ { l }$'
What is the growth rate of y if $y = k ^ { a } / l ^ { ( 1 - a ) } , a > 0 ?$
A) $g _ { y } = \bar { g } _ { k } ^ { a } + g _ { l } ( 1 - a )$
B) $g _ { y } = a \left( \bar { g } _ { k } + \bar { g } _ { l } \right)$
C) $g _ { y } = a \bar { g } _ { \ell } + ( 1 - a ) \bar { g } _ { l }$
D) $g _ { y } = a \bar { g } _ { \ell } - ( 1 - a ) \bar { g } _ { l }$
E) $g _ { y } = a \bar { g } _ { k } / ( 1 - a ) \bar { g } _ { l }$

Quizplus · Accepted Answer

The Answer of Suppose k and l grow at constant rates given by $\bar { g } _ { k }$ and $\bar { g } _ { l }$'
What is the growth rate of y if $y = k ^ { a } / l ^ { ( 1 - a ) } , a > 0 ?$
A) $g _ { y } = \bar { g } _ { k } ^ { a } + g _ { l } ( 1 - a )$
B) $g _ { y } = a \left( \bar { g } _ { k } + \bar { g } _ { l } \right)$
C) $g _ { y } = a \bar { g } _ { \ell } + ( 1 - a ) \bar { g } _ { l }$
D) $g _ { y } = a \bar { g } _ { \ell } - ( 1 - a ) \bar { g } _ { l }$
E) $g _ { y } = a \bar { g } _ { k } / ( 1 - a ) \bar { g } _ { l }$

Suppose K and L Grow at Constant Rates Given By \bar