Problem
Over the period 1980-2003, Lebanon averaged per capita GDP growth of 2.9 percent per year. Over that same period, total physical capital (K) grew by 8.1 percent per year and the employed labor force (L) by 2.4 percent. We also know that about 35 percent of Lebanon's GDP in value-added terms was contributed by physical capital and 65 percent by labor.
a Calculate Lebanon's average TFP over this period.
b Explain what the value you calculated means.
c Has Lebanon had extensive and/or intensive economic growth? If there has been both types of growth, how much of each kind of growth has there been?
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.