Destinyyyy
  • Destinyyyy
Suppose that an economy grows by 6 percent, total factor productivity grows by 4 percent, and the capital stock increases by 2 percent.....
Mathematics
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
katieb
  • katieb
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
Destinyyyy
  • Destinyyyy
Suppose that an economy grows by 6 percent, total factor productivity grows by 4 percent, and the capital stock increases by 2 percent. If labor and capital are the only inputs used in production and capital contributes 25 percent to GDP, then the labor force has risen by _____. Question 10 options: 1) 1.5 % 2) 2% 3) 4% 4) 6% 5) 8%
ybarrap
  • ybarrap
I might be able to help if you tell me the relationships between economy, factor productivity and capital stock Is economy (E) a function of stock (S) and productivity (P)? Something like $$ E=\alpha S + \beta P +\delta SP~? $$ Where \(\alpha, \beta~\&~\delta\) are constants
Destinyyyy
  • Destinyyyy
My book shows this @ybarrap

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

ybarrap
  • ybarrap
Ok, so $$ \%\Delta Y=\%\Delta\text{TFP}+0.7(\%\Delta L)+0.3(\%\Delta K) $$ Givens: $$ \%\Delta Y=6\\ \%\Delta\text{TFP}=4\\ \%\Delta K=2 $$ We need to find \(\%\Delta L\), percent change in the labor force. Using the first equation: $$ \%\Delta Y=\%\Delta\text{TFP}+0.7(\%\Delta L)+0.3(\%\Delta K)\\ 6=4+0.7(\%\Delta L)+0.3\times 2\\ \implies \%\Delta L=\cfrac{6-4-0.3\times 2}{0.7}\\ $$ Does this make sense?
Destinyyyy
  • Destinyyyy
Um yes? But I completed this question 3 hours ago. I took a guess and got it right.

Looking for something else?

Not the answer you are looking for? Search for more explanations.