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Question 4 (10 points) Over the past 25 years, an economy total output has grown from 10000 to
13000 , its capital stock has risen from 2500 to 3250 , and its labour force has increased from
5000 to 5750 . Using the growth-accounting equation, how would you attribute output growth into
three sources - capital, labour, and total factor productivity - assuming that the share of labour in
output is 0.7?

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Question 4 10 points Over the past 25 years an economy to.pdf

  • 1. Question 4 (10 points) Over the past 25 years, an economy total output has grown from 10000 to 13000 , its capital stock has risen from 2500 to 3250 , and its labour force has increased from 5000 to 5750 . Using the growth-accounting equation, how would you attribute output growth into three sources - capital, labour, and total factor productivity - assuming that the share of labour in output is 0.7?