Question: The following data give real GDP, Y, capital, K, and labour, N, for the Canadian economy in various years. Units and sources are the same

The following data give real GDP, Y, capital, K, and labour, N, for the Canadian economy in various years.

Units and sources are the same as in Table 3.1 on page 57. Assume that the production function is Y = AK0.3IN0.7.
a. How much did Canadian total factor productivity grow between 1960 and 1970? Between 1970 and 1980? between 1980 and 1990?
b. What happened to the marginal product of labour between 1960 and 1990? Calculate the marginal product numerically as the extra output gained by adding one million workers in each of the two years. (The data for employment, N, is measured in millions of workers, so an increase of one million workers is an increase of 1.0.)

Year 1960 1970 1980 1990 368 577 768 225 352 498 650 5.9 7.9 11.1 13.1

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