Question: 4. (10 points) Consider the folowing data, which apply to countries A and B in the years 2000 and 2010. In both countries, the production

4. (10 points) Consider the folowing data, which apply to countries A and B in the years 2000 and 2010. In both countries, the production function lin per-worker terms) is y = AKh " where a = 1/2. Output Physical Human per Capital per Capital per Country Year Worker, y Worker, k Worker, 2000 500 2 2010 3.500 24 2000 600 4 2010 6,000 48 Which country had higher productivity growth between 2000 and 2010? How about if a=2/3? Show how you got your answer. (You do not need to use a calculator to answer this question.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
