Suppose two countries have the same growth rates of capital and labor inputs. These factors contribute two

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Suppose two countries have the same growth rates of capital and labor inputs. These factors contribute two percentage points to their respective countries’ total output growth rates.

Output growth rates are 2.5% for country 1 and 4.5% for country 2.

a) Explain the difference in total output growth between these two countries.

b) Calculate productivity growth for both countries.

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Macroeconomics Policy And Practice

ISBN: 978-0133424317

2nd Edition

Authors: Frederic Mishkin

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Question Posted: Feb 17, 2024 11:00 PM

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Suppose two countries have the same growth rates of capital and labor inputs. These factors contribute two

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Macroeconomics Policy And Practice

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