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Questions › IIT JAM › IIT JAM 2023 › Q26
2 marks, −0.667Economics of Growth and Development › Endogenous growth and technical progress › Technical progress and growth accountingHardabout 3 min

IIT JAM 2023 Question 26: Endogenous growth and technical progress

A production function Yt=AtKtαLt1−αY_t=A_tK_t^{\alpha}L_t^{1-\alpha}Yt​=At​Ktα​Lt1−α​, α∈(0,1)\alpha\in(0,1)α∈(0,1). With per-capita output y=Y/Ly=Y/Ly=Y/L and capital-output ratio k=K/Yk=K/Yk=K/Y, and x˙\dot xx˙ denoting dx/dtdx/dtdx/dt, the per-capita output growth rate is

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A production function Yₜ=AₜKₜ^αLₜ^(1-α), α∈(0,1). With per-capita output y=Y/L and capital-output ratio k=K/Y, and ẋ denoting dx/dt, the per-capita output growth rate is (A) ẏ/y=1/(1-α)Ȧ/A+α/(1-α)k̇/k (B) ẏ/y=α/(1-α)Ȧ/A+1/(1-α)k̇/k (C) ẏ/y=(1-α)Ȧ/A+αk̇/k (D) ẏ/y=αȦ/A+(1-α)k̇/k

Also written as: A production function Y_t=A_tK_t^(alpha)L_t^(1-alpha), alpha in (0,1). With per-capita output y=Y/L and capital-output ratio k=K/Y, and x_dot denoting dx/dt, the per-capita output growth rate is

Endogenous growth and technical progress has come up 25 times in 6 exams since 2016.

What this question tests

This question is on Technical progress and growth accounting, part of Endogenous growth and technical progress in Economics of Growth and Development.

Splitting growth into inputs and technology, and the types of technical change.

TestStop has 11 past-paper questions on this subtopic; the nearest in year are below.

  • GATE 2023 · Q64A labour-augmenting production function is Y = K⁰·³³(AL)⁰·⁶⁷ where Y= output, K= capital, L= labour, and A=…
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