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Please explain very slowly step by step how I can find the contribution to growth made by total factor productivity in this Cobb-Douglas production function equation.

Suppose an economy's production function is AKαL1-α.

If the annual rate of economic growth is 3.5%, and labor and capital are growing at 2% annually, what contribution is made by total factor productivity? Labor receives 75% of the total income generated in this model.

Macroeconomics, Economics

  • Category:- Macroeconomics
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