What if both the labor and the capital stocks are fixed

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Suppose output is growing at 3 percent per year and capital's and labor's shares of income are .3 and .7, respectively.

a. If both labor and capital grow at 1 percent per year, what would the growth rate of total factor productivity have to be?

b. What if both the labor and the capital stocks are fixed?

Reference no: EM131134366

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