Essay
Suppose that the production function is Y = AK⁰.⁷ᴸ⁰.³,the number of workers equals 800,the capital stock is $150 000,and total factor productivity is 3.What is the value of real GDP? What will happen to real GDP if total factor productivity doubles?
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Y = AK⁰.⁷ᴸ⁰.³ = 3 ($150 000)⁰....View Answer
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