Answer:
1.51%
Explanation:
Recall that:
Total Output = [tex]A\times K^a \times ^{1-a}[/tex]
here;
A = total productivity factor
K = capital input
L = labor input
SInce Landowners gets 50% of income; then a = 0.50
[tex]= A\times K^ {0.50} \times ^{1-0.50}[/tex]
Output at 424BBC
[tex]= 1.003A \times (1.014K)^{0.5}(1.01L)^{0.5}[/tex]
[tex]= 1.003 \times (1.007)(1.005)AK^{0.5}L^{0.5}[/tex]
[tex]=1.0151AK^{0.5}L^{0.5}[/tex]
Thus, the growth rate from 425 BCE to 424 BCE :
= 1.0151 - 1
= 0.0151
= 1.51%
