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Macroeconomics Study Set 18
Quiz 6: Long-Run Economic Growth
If Capital and Labor Each Grow 5% in a Year,the
Question 10
Multiple Choice
If capital and labor each grow 5% in a year,the elasticities of output with respect to capital and labor sum to one,and productivity grows 2% in the year,by how much does output grow during the year? A)2% B)3% C)5% D)7%
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Related questions
Q 11
Total factor productivity growth is that part of economic growth due to A)capital growth plus labor growth. B)capital growth less labor growth. C)capital growth times labor growth. D)neither capital growth nor labor growth.
Q 12
Over the past year,output grew 4%,capital grew 2%,and labor grew 1%.If the elasticities of output with respect to capital and labor are 0.3 and 0.7,respectively,how much did productivity grow? A)2.0% B)2.7% C)3.0% D)3.3%
Q 13
Over the past year,output grew 5%,capital grew 5%,and labor grew 1%.If the elasticities of output with respect to capital and labor are 0.3 and 0.7,respectively,how much did productivity grow? A)0.5% B)1.0% C)2.2% D)2.8%
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