Calculate the growth rates of output (y) and labor productivity (y €“ h) in each of the following scenarios. Assume that the share of capital in total income (b) is 0.25.
(a)

(b)

(c)

Based on your calculations, what happens to output growth and labor productivity growth as MFP growth declines, capital input growth declines, and labor input growth increases, holding the other variables constant? Are these the results you would expect? Why or why not?

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k-2222 5050 y-h 2.0 ー2.5 1.0 25 0.5 2.5 2.5 2.0 2.5 2.0 2.0 2.5 2.0 2.0 1.0 15