2. Suppose the production function is Y = AK0.3N0.7. Suppose in 2000, K = 1000, N =...

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2. 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?

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Macroeconomics Global Edition

ISBN: 978-1292318615

10th Edition

Authors: Andrew Abel ,Ben Bernanke ,Dean Croushore

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Question Posted: Nov 14, 2024 06:00 AM

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2. Suppose the production function is Y = AK0.3N0.7 and that 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...
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2. Suppose the production function is Y = AK0.3N0.7. Suppose in 2000, K = 1000, N =...

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Macroeconomics Global Edition

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