Re: SAU PAPER

Posted by jack on Apr 02, 2014; 5:05pm
URL: http://discussion-forum.276.s1.nabble.com/SAU-PAPER-tp7585693p7585997.html

Q44
Y=k^0.4*L^.6
take log both side, we get
log Y=.4logK+.6logL
then differentiate
d(logy)=.4d(logK)+.6d(logL)
we know that growth rate of capital=8
growth rate of labor=2
put these value in the equation
So
d(logY)=0.4*8+.6*2
3.2+1.2
4.4
so option A