Problem 1.3: Growth rates of output. (10 points)
Consider a production function
yt = k^(1/3)t * l^(2/3)t
where lt is labor, kt is capital, and yt is output. The growth rate of output is 2%, that of capital is 3%.
a) What is the growth rate of labor, lt?
b) What is the growth rate of labor productivity, yt/lt?