Problem
Suppose that the economy of India can be represented by the following production function:
Y = AK1/3L2/3 During 2009 India's technological growth (Solow residual) was 4%. The growth rates of the capital and labor input stocks were 3% in both cases.
a) Calculate India's output growth for 2009.
b) What is the contribution of productivity growth to total output growth (in percentage terms)?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.