3. Consider the production function Y, = Kª (AL¿)1-a In 2013, the capital stock Kt increased by 4%, total factor productivity A increased by 2%, and labor Lt increased by 3%. What is the growth rate of output per worker in 2013? a. (a – 1)% b. (1– a)% c. (5a + 2)% d. (2 – a)%

3. Consider the production function Y, = Kª (AL¿)1-a In 2013, the capital stock Kt increased by 4%, total factor productivity A increased by 2%, and labor Lt increased by 3%. What is the growth rate of output per worker in 2013? a. (a – 1)% b. (1– a)% c. (5a + 2)% d. (2 – a)%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Consider the production function Y, = K (AL¿)²-a In 2013, the capital stock Kt
increased by 4%, total factor productivity A, increased by 2%, and labor Lt
increased by 3%. What is the growth rate of output per worker in 2013?
a. (a – 1)%
b. (1– a)%
c. (5α +2)%
d. (2 – a)%

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