The following data give real gdp, y, capital, k, and labor n, for the
1. (10 points) The following data give real GDP, Y, capital, K, and labor N, for the US economy in various years.
|
Year |
Y (billions of 200 dollar) |
K (billions of 2000 dollar) |
N (millions of workers) |
|
1960 |
2502 |
2695 |
65.8 |
|
1970 |
3772 |
4044 |
78.7 |
|
1980 |
5156 |
5831 |
99.3 |
|
1990 |
7113 |
7809 |
118.8 |
|
2000 |
9817 |
10,392 |
136.9 |
Assume that the production function is Y = A*( K 0.3 )*( N 0.7 ).
a. By what percentage did U.S. total factor productivity rise between 1960 and 1970? Between 1970 and 1980? Between 1980 and 1990? Between 1990 and 2000?
