Compute the following ratios: the ratio of output per worker (y), the ratio of factor inputs (ka hl -a ), and the ratio of TFP (A). You would need to use data to calculate TFP as the term A in the production function. Note: put the country with higher output per worker in the numerator of each ratio
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Step 1
Step 1: To calculate the ratio of output per worker (y), we need to divide the output per worker of the country with higher output per worker by the output per worker of the other country. Show more…
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