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Basic Question 11 of 18
Assume labor cost in total factor cost is 42% in country X. Its TFP growth rate is 3%, and its labor force growth rate is 1%. What is its steady state growth rate from the neoclassical model?
B. 8.14%.
C. 7.14%.
A. 6.17%.
B. 8.14%.
C. 7.14%.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
compare classical growth theory, neoclassical growth theory, and endogenous growth theory;
explain and evaluate convergence hypotheses;
describe the economic rationale for governments to provide incentives to private investment in technology and knowledge;
CFA® 2025 Level II Curriculum, Volume 1, Module 9.