A production function with two inputs has constant returns to scale and an 80 percent income share for labour. If labour grows by 3 percent, capital grows by 2 percent and the rate of technical progress is 1.2 percent, about how many years would it take for the current level of output to double? Multiple Choice 14 18 23 35 58
A production function with two inputs has constant returns to scale and an 80 percent income share for labour. If labour grows by 3 percent, capital grows by 2 percent and the rate of technical progress is 1.2 percent, about how many years would it take for the current level of output to double? Multiple Choice 14 18 23 35 58
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.8P
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Question
![A production function with two inputs has
constant returns to scale and an 80 percent
income share for labour. If labour grows by 3
percent, capital grows by 2 percent and the
rate of technical progress is 1.2 percent, about
how many years would it take for the current
level of output to double? Multiple Choice
14 18 23 35 58](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe020f0e9-6dec-4ae2-8891-96c96a6a4dc0%2F2d3db023-23ff-4066-b536-e0395b7460f0%2F03hnjbn_processed.png&w=3840&q=75)
Transcribed Image Text:A production function with two inputs has
constant returns to scale and an 80 percent
income share for labour. If labour grows by 3
percent, capital grows by 2 percent and the
rate of technical progress is 1.2 percent, about
how many years would it take for the current
level of output to double? Multiple Choice
14 18 23 35 58
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