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According to the Romer model, if the stock of ideas increases by 15 %, how much will output per worker increase when all else is equal?

Q: Answer-According to the Romer model, if the stock of ideas increases by 15 %, how much will output per work...

formula for basic production function, according to Romer is as Yi AKi Li1- K- Now other things is equal, one unit change in A ideatechnology will increase the output by 1 dydA 1. Hence output will increase by 15 if the stock of idea increses by 15.

A 5%

B 10%

C 15%

D 20%

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According to the Romer model, if the stock of ideas increases by 15 %, how much will output per worker increase when all else is equal?

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