Consider the economy described in Problem 2.11. Suppose that total factor productivity increases to 15. a. Find
Question:
a. Find the new levels of the steady-state capital–labor ratios and real GDP per hour worked.
b. Would a similar increase in the growth rate of labor hours have the same effect? Explain.
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a 2 k 9932 y 5959 rounded b No An increase in ...View the full answer
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Related Book For
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
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