Question: Could you please help me with the question? Suppose that the production function in your country is given by GDP = zK L 1 ,

Could you please help me with the question?

Suppose that the production function in your country is given by

GDP = zKL¹,

where z is the total factor productivity, K is the stock of capital and L is the employed workers inthe economy. Assume that = 0.30 and that the depreciation rate is = 8%.

1.Using data for Switzerland, calculate the Total Factor Productivity (TFP) as the Solow Residual.

2.Decompose economic growth in your country and explain what are the main drivers of economic growth in Switzerland. Draw a table with the contributions of each factor to economic growth and explain your results.

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