Suppose the production function for new technology is Α ▲A¿ = A¿ºÑд” where 0<µ≤1, A¿ is the stock of technology and NA is labour employed in the technology sector. What А must be the value of § for such a model to generate a constant sustained growth rate of output (which depends on NA)?
Suppose the production function for new technology is Α ▲A¿ = A¿ºÑд” where 0<µ≤1, A¿ is the stock of technology and NA is labour employed in the technology sector. What А must be the value of § for such a model to generate a constant sustained growth rate of output (which depends on NA)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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