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Questions › IIT JAM › IIT JAM 2024 › Q21
2 marks, −0.667Economics of Growth and Development › Endogenous growth and technical progress › Technical progress and growth accountingModerateabout 2 min

IIT JAM 2024 Question 21: Endogenous growth and technical progress

Let the production function be Yt=AtKtαHtβLt1−α−βY_t = A_t K_t^{\alpha} H_t^{\beta} L_t^{1-\alpha-\beta}Yt​=At​Ktα​Htβ​Lt1−α−β​ with α=15\alpha = \tfrac{1}{5}α=51​ and β=25\beta = \tfrac{2}{5}β=52​. If gY=10%g_{Y}=10\%gY​=10%, gK=5%g_{K}=5\%gK​=5%, gH=5%g_{H}=5\%gH​=5%, and gL=10%g_{L}=10\%gL​=10%, then the growth rate of AtA_tAt​ is

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Let the production function be Yₜ = Aₜ Kₜ^α Hₜ^β Lₜ^(1-α-β) with α = 1/5 and β = 2/5. If g_Y=10%, g_K=5%, g_H=5%, and g_L=10%, then the growth rate of Aₜ is (A) 2 percent (B) 3 percent (C) 5 percent (D) 10 percent

Also written as: Let the production function be Y_t = A_t K_t^(alpha) H_t^(beta) L_t^(1-alpha-beta) with alpha = 1/5 and beta = 2/5. If g_Y=10%, g_K=5%, g_H=5%, and g_L=10%, then the growth rate of A_t 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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