(solution) QUESTION 3 (1) Suppose there is no technological change

(solution) QUESTION 3 (1) Suppose there is no technological change

QUESTION 3

  1. (1) Suppose there is no technological change (?A/A=0), L grows at 1 percent (?L/L=1%), and K at 4 percent (?K/K=4%). What is the output growth (?Q/Q), if aL= 3/4 and aK = 1/4? 

    Your answer: _______% (Do NOT include ?%? in your answer. Round your answer to two decimal places, unless your answer is an integer.)