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Suppose That the Production Function for the Economy Is Y

Question 44

Multiple Choice

Suppose that the production function for the economy is Y = AK¹/⁴ᴸ³/⁴.Assume that real GDP is $8000 billion,capital stock is $32 000 billion,and the labour supply is 120 million (or 0.120 billion) workers.Total factor productivity for this economy is


A) 16.50
B) 1016.52
C) 2083.33
D) 2933.65

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