2. An economy has the CobbDouglas production function Y = 10K1/3L2/3. If the economys stock of capital

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2. An economy has the Cobb–Douglas production function Y = 10K1/3L2/3. If the economy’s stock of capital doubles, the share of total income paid to the owners of capital will

a. increase by 10 percent.

b. increase by one-third.

c. increase by two-thirds.

d. stay the same.

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 30, 2024 08:00 AM

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2. An economy has the CobbDouglas production function Y = 10K1/3L2/3. If the economys stock of capital

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Macroeconomics

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