Question: Suppose technology remains constant while labour force grew at a rate of 2.8 percent a year, capital stock grew at 1.7 percent per year, and
Suppose technology remains constant while labour force grew at a rate of 2.8 percent a year, capital stock grew at 1.7 percent per year, and the share of labour income in national income was 60 percent, how fast would potential GDP grow?
Note: Keep as much precision as possible during your calculations. Your final answer should be in percentage form and accurate to at least two decimal places.
Please answer with full explanation, thank you !
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