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I'm seeing the formula connecting employment,, productivity aggregate output for the first time. Could you please tell which concept this is taken from soimmoi. What I did was the following: Since Y= A L^a K^1-a
the exponent of L shows labor productivity.
For country A labour productivity is lesser than country B, accordingly country B has higher growth than A. The other factor is L which shows the labor force, even as country B has a higher unemployment rate its labor force must be growing at a higher growth rate ( which reduces the effect of unemployment on L ) so as to give 8 percent growth rates. So the option would be (b).
I'm not at all convinced by the answer though. Amit sir please help us out.
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