Question 4. The first column of in the table shows the ratio real GDP per capita of one country
relative to the US level. In the second column, you have capital per capita ( k ) relative to the US
level. Try to finish the table. Note: Both GDP per capita and Capital per capita are the relative ratio
to the levels of the US. With the Cobb-Douglas production function we can calculate the value of
national output or GDP (Y) with a combination of capital (K) and labor (L) inputs and total factor
productivity (A). Y=AKaL(1a), At per capita level, we can rewrite Cobb-Douglas function as below.
Here y=Y/L and k=K/L. Here we have GDP per capita (y) and capital per capita (k). Also we
assume is the same. y=Ak (1) Fill in the blank spots of capital input values k(13) in the fourth
column. You have the value of parameter =1/3. Keep three decimal digits for your answer. (2)
Follow the above question, we now use GDP per capita (y) and capital per capita ( k ) to derive
total factor of productivity (A) in each country. Fill in the blank spots in the last column.(3) Derive
Cobb-Douglas function at per capita level using y and k from Cobb-Douglas function at aggregate
level. Y=AKL(1a) (4) Use the Microsoft Excel spreadsheet attached and open the file "Q4". Follow
the instructions below, plot TFP (A) against GDP per capita (y). Is there any relationship between
TFP and GDP? More exactly, there is a positive or a negative trend between the two factors? %
Plot instructions: Select both columns, "GDP per capita" and "TFP (A)". Click "Insert Charts".
Select "Seatter Plot". Right click any plot and choose "Add Trendline". In "Trendline Options",
select "Linear". Select "Display equation on chart" and "Display R-squared on chart". In this graph,
"GDP per capita" should be on the vertical axis, and "TFP (A)" is on the horizontal axis. Plot the
relationship between GDP per capita ( y) and TFP below.Question 4. The first column of in the
table shows the ratio real GDP per capita of one country relative to the US level. In the second
column, you have capital per capita (k) relative to the US level. Try to finish the table. Note: B per
capita are the relative ratio to the levels of the US. GDP (Y) with a combination of capital (K) we
can calculate the value of national output or Y=AKaL(1u) At per capita level, we can rewrite Cobb-
Douglas function as below. Here y=Y/L and k=K/L. Here we have GDP per capita (y) and capital
per capita (k). Also we assume is the same. y=Akn (1) Fill in the blank spots of capital input values
k(13) in the fourth column. You have the value of parameter =1/3. Keep three decimal digits for
your answer. (2) Follow the above question, we now use GDP per capita (y) and capital per capita
(k) to derive total factor of productivity (A) in each country. Fill in the blank spots in the last
column.(3) Derive Cobb-Douglas function at per capita level using y and k from Cobb-Douglas
function at aggregate level. Y=AK2+L(i1) (4) Use the Microsoft Excel sp.
Question 4 The first column of in the table shows the ratio.pdf
1. Question 4. The first column of in the table shows the ratio real GDP per capita of one country
relative to the US level. In the second column, you have capital per capita ( k ) relative to the US
level. Try to finish the table. Note: Both GDP per capita and Capital per capita are the relative ratio
to the levels of the US. With the Cobb-Douglas production function we can calculate the value of
national output or GDP (Y) with a combination of capital (K) and labor (L) inputs and total factor
productivity (A). Y=AKaL(1a), At per capita level, we can rewrite Cobb-Douglas function as below.
Here y=Y/L and k=K/L. Here we have GDP per capita (y) and capital per capita (k). Also we
assume is the same. y=Ak (1) Fill in the blank spots of capital input values k(13) in the fourth
column. You have the value of parameter =1/3. Keep three decimal digits for your answer. (2)
Follow the above question, we now use GDP per capita (y) and capital per capita ( k ) to derive
total factor of productivity (A) in each country. Fill in the blank spots in the last column.(3) Derive
Cobb-Douglas function at per capita level using y and k from Cobb-Douglas function at aggregate
level. Y=AKL(1a) (4) Use the Microsoft Excel spreadsheet attached and open the file "Q4". Follow
the instructions below, plot TFP (A) against GDP per capita (y). Is there any relationship between
TFP and GDP? More exactly, there is a positive or a negative trend between the two factors? %
Plot instructions: Select both columns, "GDP per capita" and "TFP (A)". Click "Insert Charts".
Select "Seatter Plot". Right click any plot and choose "Add Trendline". In "Trendline Options",
select "Linear". Select "Display equation on chart" and "Display R-squared on chart". In this graph,
"GDP per capita" should be on the vertical axis, and "TFP (A)" is on the horizontal axis. Plot the
relationship between GDP per capita ( y) and TFP below.Question 4. The first column of in the
table shows the ratio real GDP per capita of one country relative to the US level. In the second
column, you have capital per capita (k) relative to the US level. Try to finish the table. Note: B per
capita are the relative ratio to the levels of the US. GDP (Y) with a combination of capital (K) we
can calculate the value of national output or Y=AKaL(1u) At per capita level, we can rewrite Cobb-
Douglas function as below. Here y=Y/L and k=K/L. Here we have GDP per capita (y) and capital
per capita (k). Also we assume is the same. y=Akn (1) Fill in the blank spots of capital input values
k(13) in the fourth column. You have the value of parameter =1/3. Keep three decimal digits for
your answer. (2) Follow the above question, we now use GDP per capita (y) and capital per capita
(k) to derive total factor of productivity (A) in each country. Fill in the blank spots in the last
column.(3) Derive Cobb-Douglas function at per capita level using y and k from Cobb-Douglas
function at aggregate level. Y=AK2+L(i1) (4) Use the Microsoft Excel spreadsheet attached and
open the file "Q4". Follow the instructions below, plot TFP (A) against GDP per capita (y). Is there
any relationship between TFP and GDP? More exactly, there is a positive or a negative trend
between the two factors? % Plot instructions: Select both columns, "GDP per capita" and "TFP
(A)". Click "Insert Charts". Select "Scatter Plot". Right click any plot and choose "Add Trendline". In
"Trendline Options", select "Linear". Select "Display equation on chart" and "Display R-squared on
chart". In this graph, "GDP per capita" should be on the vertical axis, and "TFP (A)" is on the
horizontal axis. Plot the relationship between GDP per capita ( y) and TFP below.plotted in
Spreadsheet (Excel). ". Select the two columns (as below), go "Insert" in Excel, and choose
"Charts". % Click "Chart", get scatter plot. You can adjust "Chart Titte" % In "Trendline Options",
select "Linear", Select "Display equation on chart" and "Display R-squared on chan".
