Question: 1. Using the production function in Equation (3.2) and annual data for real CDP, the capital stock, and civilian employment from the sources in Table

1. Using the production function in Equation (3.2) and annual data for real CDP, the capital stock, and civilian employment from the sources in Table 3.1, calculate and graph U.s. total factor productivity for the period since 1948. Calculate and graph the growth rate of total factor productivity. In what period was total factor productivity growth highest? Lowest? Compare your graph to a graph of the civilian unemployment rate. How does productivity behave in periods around recessions? How was productivity affected by the oil shocks of 1973-1975, 1979-1980, 1990, and 2003-2005?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Foundations Macroeconomics Questions!