Q1) Growth Accounting Abel, Bernanke and Croushore, 10th edition, Chapter 6, Numerical Problems No. 6 Over the past twenty years an economy's total output has grown from 1000 to 1300, its capital...

Extracted text: Q1) Growth Accounting Abel, Bernanke and Croushore, 10th edition, Chapter 6, Numerical Problems No. 6 Over the past twenty years an economy's total output has grown from 1000 to 1300, its capital stock has risen from 2500 to 3250, and its labor force has increased from 500 to 575. All measurements are in real terms. Calculate the contributions to economic growth of growth in capital, labor, and productivity: a. assuming that ak = 0.3 and an = 0.7. b. assuming that ak = 0.5 and an = 0.5.