Problem
Suppose output is growing at 3 percent per year and capital's and labor's shares of income are .3 and .7, respectively.
a. If both labor and capital grow at 1 percent per year, what would the growth rate of total factor productivity have to be?
b. What if both the labor and the capital stocks are fixed?
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.