Srishti posted an Question
March 17, 2021 • 01:11 am 30 points
  • UGC NET
  • Economics

Consider an economy with a cobb-douglas type or production function with two inputs capital and labour. the share of capital and labour in total output are, res

Consider an economy with a Cobb-Douglas type of production function with two inputs capital and labour. The share of capital and labour in total output are, respectively 1/4 and 3/4. The rates of growth of capital and labour are, respectively 8% and 4% per annum. Neutral technical progress takes place at the rate of 3% per annum. What will be the rate of growth of output per annum in this economy? (a) 5% (b) 7% (c) 9% (d) 8%

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  • Aabha mishra 1

    See this easy method for calculating such type of question

    cropped9182147285281286042.jpg
  • Ravindra nath mahto best-answer

    In this solution, calculation is more lengthy and it will require use of log and antilog tables. However, answer has been given. Look at it carefully.

    Adobe Scan Mar 16, 2021 (1).pdf
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