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Growth rates of the capital and labor input stocks

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Reference no: EM131092730

Suppose two countries have the same growth rates of the capital and labor input stocks. these factors contribute 3 percentage points to their respective countries' total output growth rates. output growth rate is 4.5% for country 1 and 6.5% for country 2 which of the following is the most likely explanation for the difference in total output growth they experiencing

A. two countries have differences in the amount of tecnology or productivity growth they are experiencing

B. Country 1 has a lower level of investment in physical capital

C. Country 2 has a lower level of investment in physical capital

D. The two countries have differences in the amount of population growth

Assume the production function is Y=A(K^0.3)(L^0.7)

What is the productivity growth rate for both countries?

Reference no: EM131092730

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