(1) the rate of depreciation is 10% per year, (2) the population growth rate is 2% per...
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Question:
(1) the rate of depreciation is 10% per year,
(2) the population growth rate is 2% per year, and
(3) the growth rate of technology is 3% per year.
In the case of constant returns to scale but assuming decreasing returns to capital and decreasing returns to labor. If capital decreases by 3% and labor decreases by 3%, then we know that output will
remain the same
decrease by more than 6%
decrease by 6%
decrease between 3% and 6%
decrease by 3%
Related Book For
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman
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