From 2000 to 2001 a Country's Output Rose from 4000

question 38

Essay

From 2000 to 2001 a country's output rose from 4000 to 4500, its capital stock rose from 10,000 to 12,000, and its labour force declined from 2000 to 1750. Suppose a_K = 0.3 and a_N = 0.7.
a. How much did capital contribute to economic growth over the year?
b. How much did labour contribute to economic growth over the year?
c. How much did productivity contribute to economic growth over the year?

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Definitions:

Motivates

Refers to factors or actions that drive an individual to take action or persist in an activity.

Compromise

Occurs when each party gives up something of value to the other.

Conflict Resolution

The methods and processes involved in facilitating the peaceful ending of conflict and retribution.

Superficial

Relating to or affecting only the surface or appearance of something, rather than its substance or underlying realities.