Assume That the Rate of Technological Advance Is 1

question 50

Multiple Choice

Assume that the rate of technological advance is 1.5% and both labor and capital grow at a rate of 2%.What is the rate of output growth if labor's share of income is three times as high as capital's share and there are constant returns to scale?

• A)1)5%
• B)2)0%
• C)3)0%
• D)3)5%
• E)5)5%

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