The rate at which potential output will grow

Reference no: EM13196518

If capital’s share of income is 25% and labor’s share of income is 75%, the stocks of both capital and labor increase by 50% (?K/K = ?N/N = 0.5), and there is no technology growth,

At what rate will potential output grow?

Will the capital-labor ratio increase at all?

Reference no: EM13196518

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