Question

Please help with a economics problem! Thank you so much.

K4 = 50, Kt+5 = 60, N4 = 100, Nt+5 = 110, Y1 = 50, Yt+5 = 60.

Answer 1

A) growth rate=(60-50)/50*100=10/50*100=20%

B) time period =5 years

Annual growth rate =20%/5=4%

C)k growth rate=(60-50)/50*100=20%

D) average annual growth =20% /5=4%

E)N growth rate=(110-100)/100*100=10%

F) average annual Growth rate=10%/5=2%

G)A at t period=50/{(50^1/3)*(100^2/3)}=50/(3.6 *21.5)=0.64

A at t+5 period=60/{(60^1/3)*(110^2/3)}=60/(3.9*22.9)=0.67

Growth rate TFP(A)=0.03/0.64*100=4.6%

H) average annual Growth=4.6%/5=0.92%

I)Y=0.67*(50^1/3)*(100*2/3)=51.8

Fraction of growth in y can be attribute to growth of TFP=1.8/10=0.18

J)for K,

Y=0.64*(60^1/3)*(100^2/3)=53.6

Fraction of growth in y can be attribute to K=3.6/10=0.36

K)for N,

Y=0.64*(50^1/3)*(110^2/3)=52.7

Fraction of Growth in y can be attribute to N =2.7/10=0.27

Note: the total sum of fraction doesn't equal to 1 after adding up is because of i took the value just one place after decimal.