Cobb -Douglas production function is Q = A . When growth rates are 1 %, 2% and 3% respectively for technology, labour and capital, find the growth rate in the economy when output is Q.
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JNU SSS 2021 Question 2: Endogenous growth and technical progress
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Cobb -Douglas production function is Q = A L^(1/2)K^(1/2). When growth rates are 1 %, 2% and 3% respectively for technology, labour and capital, find the growth rate in the economy when output is Q. (A) 3.70% (B) 3.50% (C) 6.20% (D) 5.40%
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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.
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