Srishti Asked a Question
March 16, 2021 7:41 pmpts 30 pts
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
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  • Ravindra nath mahto thankyou
    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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