Let us assume that until 1820 the world output at every time t was described by...

   

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Let us assume that until 1820 the world output at every time t was described by the following production function: Yt = ZX0.4 N0.0 where Zt stands for the aggregate productivity variable, X denotes a fixed stock of land used in agriculture and Nt represents the aggregate population at time t. Let us assume that productivity grows at a constant rate a =(0,1): (1 + a)Zt C Zt+1 = Write-down the per capita production function and derive a relationship between the growth rate of the output per capita from time t to t+1, and the growth rate of the aggregate population from time t to t+1. (5 points) Let us assume that until 1820 the world output at every time t was described by the following production function: Yt = ZX0.4 N0.0 where Zt stands for the aggregate productivity variable, X denotes a fixed stock of land used in agriculture and Nt represents the aggregate population at time t. Let us assume that productivity grows at a constant rate a =(0,1): (1 + a)Zt C Zt+1 = Write-down the per capita production function and derive a relationship between the growth rate of the output per capita from time t to t+1, and the growth rate of the aggregate population from time t to t+1. (5 points)

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The image shows a problem related to economic productivity and growth The function given in the problem is Yt Zt X04 Nt06 This function represents the ... View the full answer