Capital per person in India is about six percent and per capita income is about eight percent of the U.S. level. Given that per capita income y = A , calculate the level of total factor productivity (A), relative to the U.S

level, that would be needed for India to match the U.S. level of per capita income. ( = 0.43)


1 = A × 0.43 implies A = 2.3

Economics

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