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solong [7]
2 years ago
7

If output is given by a Cobb-Douglas production function, real GDP is growing at 4%, the capital to labor ratio is constant, and

the labor force is growing at 1.5%, what is the growth rate of the Solow residual
Business
1 answer:
omeli [17]2 years ago
8 0

Based on the capital to labor ratio and the labor force growth rate, the growth rate of the Solow residual is 2.5%.

<h3>What is the Solow Residual?</h3>

This is the part of the growth in real GDP that is not as a result of an increase in capital or labor. The capital remained at zero growth and the labor was growing at 1.5%.

The Solow residual growth rate will then be:

= Real GDP growth rate - Labor force growth

= 4% - 1.5%

= 2.5%

Find out more on the Solow model at brainly.com/question/15687941.

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Answer:

A) true

Explanation:

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3 years ago
David has purchased an investment that he expects to produce an annual cash flow of​ $3,000 for five years. He requires an​ 8% r
Inessa05 [86]

Answer:

Explanation:

In order to find the highest amount david can pay or in other words the present value of the investment we would have to discount the cash flows

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3 years ago
Managerial economist estimates the price-quantity relationship for Textile Company to be p= 40-4q a. At what output rate demand
Sindrei [870]

Answer:

So unit elastic at q = 5

inelastic above 5

and elastic below 5

Explanation:

The elasticity is determianted by the marginal revenue.

Our first goal is to find the marginal revenue function

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total revenue(TR)  =  quantity times price

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Now, with this fuction the economic analisys states that a demand is unit elastic when marginal revenue is zero.

It will be inelastic below zero and elastic above zero

MR will be zero when q = 5

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As quantity increases the demand will be inelastic

while

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Your plan to enter a career is an example of a (an)
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