# Macroeconomics

posted by .

Manipulation of the Cobb Douglas Equation gives us expression for output per working age person:

growth rate of (Y/N)=[1/(1-alpha)*growth rate of TFP]+[(alpha/(1-alpha))*growth rate of (K/Y)]+ [growth rate of (L/N)]

N is the working age population
K is capital stock
L is labor quantity
TFP is total factor productivity
Why is this equation useful?
What are the main determinants of K/Y and L/N

The Cobb Douglas equation is used to calculate the productivity of factors, growth rate of output by using the ratio of labor to total population and the ratio of capital to the total income in a country at a point of time.

K/Y is the ratio between capital and total income and L/N is the ratio between the labor force and the total population of the nation at a point of time.

The determinants of K/Y are :
1.

## Similar Questions

1. ### Macroeconomics

Calculating the Rate of Growth of Per Capita Real GDP The annual rate of growth of real GDP in a developing nation is 0.3 percent. Initially, the countries' population was stable from year to year. Recently, however, a significant …
2. ### Calc

After its fastest rate of growth ever during the 1980s and 1990s, the rate of growth of world population is expected to slow dramatically in the twenty-first century. The function G(t) = 1.58e−0.213t gives the projected annual …
3. ### math

After its fastest rate of growth ever during the 1980s and 1990s, the rate of growth of world population is expected to slow dramatically in the twenty-first century. The function G(t) = 1.58e−0.213t gives the projected annual …
4. ### Calculous Pre

A population grows from 11,000 to 15,000 in three years. Enter your answers to three decimal places. Assuming the growth is exponential, find the growth rate and continuous growth rate Growth rate ______ %?
5. ### Math

Assume the carrying capacity of the earth is 9 billion. Use the 1960s peak annual growth rate of 2.1​% and population of 3 billion to predict the base growth rate and current growth rate with a logistic model. Assume a current population …
6. ### Math

N(t)=2000e^(1.1t) the continuous growth rate is 110% effective growth rate?
7. ### Algebra II Help

4) The function f(x)=2(3)^x represents the growth of a dragonfly population every year in a remote swamp. Rose wants to manipulate the formula to an equivalent form that calculates seven times a year, not just once a year. Which function …
8. ### college algebra

23. In biology, the function defined by g(x)=5x/2+x gives the growth rate of a population for x units of available food. (Source: Smith, J. Maynard, Models in Ecology, Cambridge University Press.) (a) What amount of food (in appropriate …
9. ### Math

What is the value of a stock that grows at a supernormal rate of 18% for the first four years, and then slows down to a constant growth rate of 10%?
10. ### Accounting

How can I find the supernormal growth rate and constant growth rate of a stock?

More Similar Questions