Question: Suppose for the U . S . that GDP is $ 2 0 trillion, the capital stock is $ 4 0 trillion, employment is 1

Suppose for the U.S. that GDP is $20 trillion, the capital stock is $40 trillion, employment is 150 million, hours worked are 250 billion, and the population is 300 million. Suppose further that Chinas (PPP dollar) GDP is $20 trillion, its capital stock is $25 trillion, employment is 600 million, hours worked are 1.25 trillion, and the population is 1.2 billion. Assume the production function takes the cobb douglas form. What is the ratio of U.S. to Chinese labor productivity?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!