(a) What is the growth rate of output per person in this economy? (b) What is the initial level of output per person? What is the level of output per person after 100 years? (c) Now consider the following changes one at a time: a doubling of the initial stock of knowledge Ao, a doubling of the research share I, a doubling of research productivity 2, and a doubling of the population L. How would your answer to parts (a) and (b) change in each case?
(a) What is the growth rate of output per person in this economy? (b) What is the initial level of output per person? What is the level of output per person after 100 years? (c) Now consider the following changes one at a time: a doubling of the initial stock of knowledge Ao, a doubling of the research share I, a doubling of research productivity 2, and a doubling of the population L. How would your answer to parts (a) and (b) change in each case?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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