What if both the labor and the capital stocks are fixed

Assignment Help Econometrics
Reference no: EM131134366

Suppose output is growing at 3 percent per year and capital's and labor's shares of income are .3 and .7, respectively.

a. If both labor and capital grow at 1 percent per year, what would the growth rate of total factor productivity have to be?

b. What if both the labor and the capital stocks are fixed?

Reference no: EM131134366

Questions Cloud

The npv & payback method : Suppose you are evaluating a project with the cash inflows shown in the following table. Your boss has asked you to calculate the projectAc€?cs NPV. You donAc€?ct know the projectAc€?cs initial cost, but you do know the projectAc€?cs regular payb..
Determining the root causes of health disparities : Determining the root causes of health disparities helps us to ask critical research questions regarding social forces that may contribute to disease patterns.
Write response to the ideas or arguments : Watch one of these TED talks in this playlistWords, Words, Words! (Links to an external site.) - Write response to the ideas / arguments in the talk.
Two different active equity portfolio managers : Consider the annual returns produced by two different active equity portfolio managers (A and B) as well as those to the stock index with which they are both compared:
What if both the labor and the capital stocks are fixed : Suppose output is growing at 3 percent per year and capital's and labor's shares of income are .3 and .7, respectively.
A banker who have access to the above rates : Assume that you are a banker who have access to the above rates. What EUR/USD rate or USD per Ac‚¬ would you quote for an exporter who is interested hedging its EUR100m cash inflows due in three months?
Depreciation for each year using the straight line method : Ace uses a calendar year and the truck was purchased on July 1, 2015. Calculate the depreciation for each year using the straight line method and the double declining balance method
How long will it take for output to double : Now suppose technology grows at a rate of 2 percent. Recalculate your answers to ( a ) and ( b ).
Is evaporation the absorption or release of latent heat : Is evaporation the absorption or release of latent heat? According to the video, what is the common length of storage time for most atmospheric water (rainfall, snowfall) that fall onto land?

Reviews

Write a Review

Econometrics Questions & Answers

  Identify the appropriate management assertion

Explain the differences between management assertions, general audit objectives, and specific audit objectives, and their relationships to each other.

  In what range of values has the spread fluctuated

What do you conclude about the willingness of banks to lend to one another now as compared to the beginning of 2007? as compared to the fall of 2008? Explain.

  What is unemplotment rate if labor market is competitivie

In a paticular industry labor supply is Es=10+w and labor demand is Ep=70-3w where E is the level of employment and w is the hourly wage. A. what is the quilibrium wage and employment if the labor market is competitivie? What is the unemplotment rat..

  What is the purchasing power of the present value

Jerry will receive the following payments: 905 in year 3, 952 in year 5 and 933 in year 9. What is the purchasing power of the present value of these payments if the market interest rate is 16% per year and the inflation rate is 8% per year

  What is the expected value of employees you hire

You need to hire some new employees to staff your start-up venture. You know that potential employees are distributed throughout the population as follows, but you can't distinguish among them: Employee Value Probability

  What is elasticity of demand at the market-clearing price

a.) what is the market-clearing price b.)how much will he produce c.) what is the net profits d.) what is the elasticity of demand at the market-clearing price

  What is the long-run average cost

A firm has a production function Q=F(K,L) with the constant return to scale, where k is units of capital and L is unites of labour.Imput prices are r=$2 per unit of K and w=$1 per unit of L.When it produces 5 units of output,it uses 2 units of cap..

  What is the price tad receives for selling the bait

Tad's bait shop has a monopoly on the bait market at Sanderson's Lake. The demand curve for bait is QD = 56 - 8P -> P = 7 - 18 QD. This implies the marginal revenue function is: MR(Q) = 7 - 14 Q. Tad has two employees he can use to search for bait..

  Calculate the cross-price elasticity of demand for gas

Use comparative static analysis to illustrate (that means draw graphs) and describe what should happen to the equilibrium price and quantity in the markets for wild salmon and the Languedoc white wine, given just this information. Be specific but ..

  Calculate the real return of the bond one year ago

One year ago your bought a bond for $10,000. You received interest of $400 at the end of the year, as well as your $10,000 principal. If the inflation rate over the last year was five percent, calculate the real return.

  How to use the poisson approximation to the binomial

It is estimated that .44 percent of the callers to the Customer Service department of Dell, Inc. will receive a busy signal. What is the probability that of today's 1,100 callers at least 5 received a busy signal Use the poisson approximation to t..

  Describe which curve will shift what effect it will have on

Describe which curve will shift (demand or supply or both), what effect it will have on price (rise or fall in price), and what will happen to quantity (rise or fall in quantity). Each line item requires a paragraph.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd