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Suppose that an economys production function is CobbDougla.pdf

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Suppose that an economy's production function is Cobb-Douglas with parameter =0.3. a. Capital and labor receive shares of income of and respectively. b. Suppose immigration increases the labor force by 10 percent. (i) Total output will (ii) The rental price of capital will (iii) The real wage willc. Suppose that a gift of capital from abroad raises the capital stock 1 by 10 percent. (i) Total output will (ii) The rental price of capital will (iii) The real wage will d. Suppose that a technological advance raises the value of the parameter A by 10 percent. (i) Total output will (ii) The rental price of capital will (iii) The real wage will.

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Suppose that an economy's production function is Cobb-Douglas with parameter =0.3. a. Capital and labor receive shares of income of and respectively. b. Suppose immigration increases the labor force by 10 percent. (i) Total output will (ii) The rental price of capital will (iii) The real wage willc. Suppose that a gift of capital from abroad raises the capital stock 1 by 10 percent. (i) Total output will (ii) The rental price of capital will (iii) The real wage will d. Suppose that a technological advance raises the value of the parameter A by 10 percent. (i) Total output will (ii) The rental price of capital will (iii) The real wage will

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Suppose that an economys production function is CobbDougla.pdf

  • 1. Suppose that an economy's production function is Cobb-Douglas with parameter =0.3. a. Capital and labor receive shares of income of and respectively. b. Suppose immigration increases the labor force by 10 percent. (i) Total output will (ii) The rental price of capital will (iii) The real wage willc. Suppose that a gift of capital from abroad raises the capital stock 1 by 10 percent. (i) Total output will (ii) The rental price of capital will (iii) The real wage will d. Suppose that a technological advance raises the value of the parameter A by 10 percent. (i) Total output will (ii) The rental price of capital will (iii) The real wage will