Essay
Suppose the production function is Y = AK0.3N0.7. Suppose in 2000,K = 1000,N = 100,and Y = 199.5.In 2010,capital,labor,and output have doubled,so K = 2000,N = 200,and Y = 399.
(a)By what percentage did productivity grow from 2000 to 2010?
(b)If output had risen to 798 instead of 399,and capital and labor doubled,by what percentage would productivity have grown from 2000 to 2010?
Correct Answer:
Verified
(a)From the production function,you can ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q6: A tremendous flood along the Mississippi River
Q7: What is the unemployment rate if there
Q8: How many people are employed if the
Q9: The marginal product of labor (measured in
Q10: A bird flu epidemic causes many people
Q12: Economists often treat the economy's capital stock
Q13: The marginal product of labor (measured in
Q14: Marginally attached workers<br>A)are not looking for work
Q15: The city of Hope has a labor
Q16: How would each of the following events