What if both the labor and capital stocks are fixed

Assignment Help Business Economics

Reference no: EM13838160

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 at 1 percent year what would the growth rate of total factor productivity have to be?

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

Reference no: EM13838160

Questions Cloud

Suppose that capitals and labors shares : Suppose that capital's and labor's shares at .3 and .7. What would the effect be of increasing the pool of labor by 10 percent? If the increasing labor is due to population growth, will the resulting increasing have an effect on people’s welfare?

Calculate the unemployment rate and adult population : Calculate the (1) unemployment rate, (2) labor force participation rate, (3) adult population and (4) the total population for the small town with the following statistics: employed = 1,000, labor force = 1,400, Not in the Labor Force = 1,000 and min..

About the dollar is equal : If the US Dollar is equal to 10 Mexicxan Pesos. Then we can say that the US Economy is doing better than Mexico's economy and the US Dollar can buy more than the Peso.

What will happen to existing supply avenues : There is much discussion in the press about several states moving to legalizing marijuana, either for only medical purposes, or more extremely, for recreational purposes. What will happen to existing supply avenues? Would one expect prices to change ..

What if both the labor and 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. If both labor and capital at 1 percent year what would the growth rate of total factor productivity have to be? What if both the la..

Two part tariff pricing rule : You are an executive for Super Computer, Inc. (SC), which rents out super computers. SC receives a fixed rental payment per time period in exchange for the right to unlimited computing at a rate of P cents per second. What rental fee and usage fee sh..

Preparing to lead globally : Preparing to Lead Globally How can future leaders (like yourselves) prepare to lead in a global environment? 150 words

Estimated the income elasticity of demand for blue-jeans : The research department of the COLLEGE STUDENT BLUE-JEANS has estimated the income elasticity of demand for blue-jeans of the Gap Corporation to be 2. Further, most economic forecasts predict a 3% increase in incomes for students during the upcoming ..

Culture affect and individual or a company leadership style : How can a culture affect and individual or a company's leadership style? Discuss both company culture and personal culture, and give examples. 150 words or less

User Account

All Pages