Question: In 2010 the economy s resource base consists of 10 laborers

In 2010, the economy's resource base consists of 10 laborers and a capital stock of $50. Its capital output ratio is 2. In 2011, its capital stock increases to $75, while the number of laborers and capital output ratio remain unchanged.
Calculate
(1) The 2010­2011 rate of economic growth,
(2) The capital-labor ratio in 2010,
(3) The GDP in 2010, and
(4) The 2010­2011 capital deepening.

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  • CreatedApril 21, 2015
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