The Schweser Study Notes say that we should multiple the terms of the function (T, K, L) but when I look at the answer for question #70 in the Schweser Afternoon Exam 1, the terms (T, K, L) are summed.
Which is correct?
it is added because they have asked growth rate of gdp (which is)= growth rate of technology ( total factor productivity) + alpha * g rate of capital + 1-Alpha * g rate of labor ( los 15.e) and not cobb douglas production function ( los 15.d) which is t *k RAISE TO POWER Alpha * L RAISE TO POWER 1- Alpha.
hope this helps.
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