What is the growth rate of productivity

Assignment Help Business Management
Reference no: EM131243407

Consider an economy with an aggregate wage bill of 200 billion dollars and an aggregate GDP of 400 billion. The aggregate GDP growth rate for this economy over the last 10 years was 8 percent (that is Δ Y/ Y=0.08) and the growth rates of capital and labor were 5 percent (Δ K/ K=0.05) and 5 percent (Δ L/L=0.05) respectively.

(a) What are the "capital share (α)" and the "labor share (1-α)"?

(b) What was the growth rate of "A" for this country?

(c) Imagine now that aggregate GDP is the SAME, but the wage bill is 300 billion. What is the growth rate of productivity now if the growth rates of GDP, capital and labor are still .08, 0.05 and 0.05 respectively? Explain intuitively why your answer is or is not different from (b).

(d) Repeat part (b) under the assumption that Δ K/K=0.10. Explain intuitively why your answer is or is not different from (b).  I understand a, but trying to wrap my head around b, c and d.

Reference no: EM131243407

Questions Cloud

Create a mind map or diagram with defense in depth approach : Read the article "The Vulnerability of Nuclear Facilities to Cyber Attacks". With the knowledge gleaned from the course, create a mind map or diagram with your defense in depth approach to securing a nuclear power plant.
Significant differences between a file processing system : List any two significant differences between a file processing system and a DBMS.
What is flow control as a security measure : What is the goal of encryption? What process is involved in encrypting data and then recovering it at the other end?
Compares energy sustainability and water sustainability : Principles of Sustainability -  International comparison - environmental action - write a report that compares and contrasts how Energy sustainability and Water sustainability have been addressed in Australia in comparison to an overseas country of..
What is the growth rate of productivity : Imagine now that aggregate GDP is the SAME, but the wage bill is 300 billion. What is the growth rate of productivity now if the growth rates of GDP, capital and labor are still .08, 0.05 and 0.05 respectively? Explain intuitively why your answer ..
What is the mass rate of oxygen lost due to evaporation : what is the mass rate of oxygen lost due to evaporation? (The heat of vaporization of oxygen is hfg = 2.13 × 105 J/kg.)
What impact does united states debt have on us businesses : What impact does the United States Debt have on United States Businesses? What impact does the United States Debt have on United States Consumers?
Calculate the surface temperature of the conductor : Assuming that the space between the two surfaces is evacuated, calculate the surface temperature of the conductor.
Numerical problems in network analysis : Give examples of numerical problems in network analysis with solutions and justification where, Superposition theorem may be more useful than mesh/nodal analysis

Reviews

Write a Review

Business Management Questions & Answers

  Pricing strategy or product strategy

Pricing strategy or Product Strategy .The company is Clorox Company and the product is  Burt's Bees.  So the Pricing strategy or Product strategy of Burts Bees whichever you feel comfortable working on.  Tomorrow by 12:00 noon should be fine.

  Usually when employers offer health insurance benefits

Usually when employers offer health insurance benefits to their workers, these benefits spread to the spouses of the workers as well.

  Illustrate what are the consequences of such reports

List as many problems as you can. Illustrate what are the consequences of such reports? Illustrate what could go wrong as a result? Explain how does the prototyping process help guard against each problem?

  How can employers protect the rights of employees

How can employers protect the rights of employees who are sexual minorities and who strongly believe homosexuality is immoral? When do attempts at inclusion go too far? When does religious freedom go too far?

  Team consists of eight employees

Your team consists of eight employees: three are newly hired employees, five employees are male and three are female. Each employee has a diverse background. Your charge is to reach the goal of improving customer service by directing the team throu..

  Develop the basic premise of your new company

You have decided to open a lemonade stand in your local neighborhood. You have grand plans for this stand and expect to attract many customers. In part I of this assignment, you will develop the basic premise of your new company. Please answer..

  Question 1 explain the difference between push and pull

question 1 explain the difference between push and pull systemsquestion 2 what are the main disadvantages of mrp

  Why organizations need to be agile to succeed

Why organizations need to be agile to succeed - The Marketplace simulation by viewing the Marketplace orientation

  Example of product contamination

Find an example of product contamination that occurred and discuss the way in which the organization reacted. What should an organization do to prepare for such a risk?

  Lucrative part of firm

You are the General Manager at the Bicker, Slaughter, and Lynch Law Firm. There is an opportunity to buy out a small law firm that was just started by a young MBA/JD, and you believe the firm can be grown and become a lucrative part of your Firm.

  Determining sales tax and revenue

You are the owner of Cache; a chain of women's clothing boutiques. Your state has a sales tax of 6% and additional city tax of 1.5%. Each quarter you are responsible of making these tax deposits to the city and state.

  Calculate mad, mapd and mse

Compare the five forecasts by using MAD, MAPD and MSE and indicate which seems to be more accurate.

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