197 Growth and accumulation Suppose Y=A x f(K,L) -i.e.variable inputs capital (K)and labour(L)combine to produce a given output -A represents technical knowledge At very low levels of income,savings may be zero as all resources are needed for consumption so capital cannot be created through investment and output may not be able to grow through time Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITYEconomics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 19-7 Growth and accumulation • Suppose Y = A × f(K, L) – i.e. variable inputs capital (K) and labour (L) combine to produce a given output – A represents technical knowledge • At very low levels of income, savings may be zero as all resources are needed for consumption • so capital cannot be created through investment • and output may not be able to grow through time