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Suppose That the Production Function for the Economy Is: Y

Question 61

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.An increase of one worker will increase real GDP by


A) $8.
B) $50 000.
C) $720 000.
D) $6 000 000.

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