From one year to the next, a country's output rose from 4000 to 4500 , its capital

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From one year to the next, a country's output rose from 4000 to 4500 , its capital stock rose from 10,000 to 12,000, and its labor force declined from 2000 to 1750. Suppose $a_{K}=0.3$ and $a_{N}=0.7$.

a. How much did capital contribute to economic growth over the year?

b. How much did labor contribute to economic growth over the year?

c. How much did productivity contribute to economic growth over the year?

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Macroeconomics

ISBN: 9780134167398

9th Edition

Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore

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Question Posted: Apr 30, 2024 01:00 AM

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From one year to the next, a country's output rose from 4000 to 4500 , its capital

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Macroeconomics

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