Find the rate of growth in k-l


Question:

The labor force (L) in a rapidly expanding economy grows according to L = 100 · 100.02t , and capital (K) increases by K = 25e0.03t . Rising labor productivity implies that the capital/labor ratio (K/L) should increase. Find the rate of growth in K/L and indicate whether or not you believe labor productivity is increasing.

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Finance Basics: Find the rate of growth in k-l
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