Problem
Growth accounting: Consider the following (made-up) statistics for some economies. Assume the exponent on capital is 1/3 and that the labor composition is unchanged. For each economy, compute the growth rate of TFP.
(a) A European economy: gY/L = 0.03, gK/L = 0.03.
(b) A Latin American economy: gY/L = 0.02, gK/L = 0.01.
(c) An Asian economy: gY/L = 0.06, gK/L = 0.15.
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.