Suppose k,l,and A grow at constant rates given by
,
,and
.The growth rate of y if
is
.

Name: Suppose k,l,and A grow at constant rates given by , ,and .The growth rate of y if is .
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Question

Suppose k,l,and A grow at constant rates given by  
,  
,and  
.The growth rate of y if  
is  
.

Quizplus · Accepted Answer

The statement is true because the growth rate of y is directly proportional to the growth rate of k and inversely proportional to the growth rates of l and A. Therefore, if k and A are growing at a constant rate and l is growing at a decreasing rate, y will grow at a constant rate proportional to the given value.

Suppose K,l,and a Grow at Constant Rates Given by