Use the data in the exhibit to complete a and b.
Exhibit: Factors of Production Data $$\begin{array} { l r c c c }
\text { Period } & Y & K & L & \text { Share of Labor in Output } \
1 & 100 & 200 & 100 & 0.5 \
1 & 106 & 205 & 102 & 0.5 \
3 & 111 & 210 & 104 & 0.5 \
4 & 110.5 & 215 & 104 & 0.5 \
5 & 110 & 220 & 104 & 0.5
\end{array}$$ a. Compute and report the value of growth in total factor productivity $( ( A t - A t - 1 ) / A t - 1 )$ in each period from periods 2 through 5 . If the value of A is 1.000 in period 1 , also report the value of A in each period.
b. Does the value of A rise in each period? If it declines, do you think this decline is because technological progress works backward? If so, explain your answer. If not, provide another explanati on.

Question

Use the data in the exhibit to complete a and b.
Exhibit: Factors of Production Data $$\begin{array} { l r c c c } 
\text { Period } & Y & K & L & \text { Share of Labor in Output } \
1 & 100 & 200 & 100 & 0.5 \
1 & 106 & 205 & 102 & 0.5 \
3 & 111 & 210 & 104 & 0.5 \
4 & 110.5 & 215 & 104 & 0.5 \
5 & 110 & 220 & 104 & 0.5
\end{array}$$ a. Compute and report the value of growth in total factor productivity $( ( A t - A t - 1 ) / A t - 1 )$ in each period from periods 2 through 5 . If the value of A is 1.000 in period 1 , also report the value of A in each period.
b. Does the value of A rise in each period? If it declines, do you think this decline is because technological progress works backward? If so, explain your answer. If not, provide another explanati on.

Quizplus · Accepted Answer

The Answer of Use the data in the exhibit to complete a and b.
Exhibit: Factors of Production Data $$\begin{array} { l r c c c } 
\text { Period } & Y & K & L & \text { Share of Labor in Output } \
1 & 100 & 200 & 100 & 0.5 \
1 & 106 & 205 & 102 & 0.5 \
3 & 111 & 210 & 104 & 0.5 \
4 & 110.5 & 215 & 104 & 0.5 \
5 & 110 & 220 & 104 & 0.5
\end{array}$$ a. Compute and report the value of growth in total factor productivity $( ( A t - A t - 1 ) / A t - 1 )$ in each period from periods 2 through 5 . If the value of A is 1.000 in period 1 , also report the value of A in each period.
b. Does the value of A rise in each period? If it declines, do you think this decline is because technological progress works backward? If so, explain your answer. If not, provide another explanati on.

Use the Data in the Exhibit to Complete a and B