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Over the Past Year,productivity Grew 1%,capital Grew 0%,and Labor Grew

question 22

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Over the past year,productivity grew 1%,capital grew 0%,and labor grew 5%.If the elasticities of output with respect to capital and labor are 0.4 and 0.6,respectively,how much did output grow?

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Definitions:

Dividend Payout Ratio

This is a financial ratio that measures the percentage of earnings paid to shareholders in the form of dividends.

Net Income

The total profit or loss of a company after all revenues, costs, expenses, and taxes have been accounted for.

Common Stock

A type of security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits through dividends.

Return On Total Assets

A profitability ratio measuring net income produced by total assets during a period by comparing net income to the average total assets.

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