In the Past Ten Years,Patagonia's Total Output Has Increased from 2000

question 56

Essay

In the past ten years,Patagonia's total output has increased from 2000 to 3000,the capital stock has risen from 4000 to 5200,and the labour force has increased from 400 to 580.Suppose aK = 0.4 and aN = 0.6.
a.How much did capital contribute to economic growth over the decade?
b.How much did labour contribute to economic growth over the decade?
c.How much did productivity contribute to economic growth over the decade?

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Definitions:

Rental Units

Housing units that are available for rent, including apartments, houses, and townhouses.

Actual Price

The selling price at which a good or service is offered to consumers in the market.

Price Ceiling

A maximum price set by law that can be charged for a good or service, below the equilibrium price, leading to a shortage.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.