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 US that GDP is $ trillion, the capital stock is $ trillion, employment is million, hours worked are billion, and the population is million. Suppose further that Chinas PPP dollar GDP is $ trillion, its capital stock is $ trillion, employment is million, hours worked are trillion, and the population is billion. Assume the Cobb douglas production function. What is the ratio of US to Chinese capitallabor How much does the difference in the capitallabor ratio contribute to the difference in labor productivity between the US and China? How much does the difference in TFP levels contribute to the difference in labor productivity between the US and China?
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