Contribution of growth in technology

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What would the expenditure multiplier in an open economy without government spending or taxes where the MPC is 0.8 and the MPm is 0? Where the MPm is 0.1? Where the MPm is 0.5? Where the MPm is 0.7? Where the MPm is 0.9? Briefly interpret the results. (05)

(b): By using growth accounting approach calculates the contribution of growth in technology, if the output is grown by 3.2%, Labor has grown by 1.4%, and Capital has grown by 1.9%, the value of α is 1/4 and value of 1- α is 3/4. Interpret the results.

Reference no: EM132550738

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