3.

Use the following information to calculate the overall (approximate) rate of economic growth from 2000 to 2001. Nominal GDP Price Index Population 2000 2,000,000 1.10 25,000 2001 2,500,000 1.40 24,000 2.3 percent 1.02 percent 1.25 percent 25 percent '~_" 71.3 percent Indicate all of the following equations that are examples of a Cobb-Douglas production function? (8.1) Y = AKO.2 10.8 (8.2) Y = A + K0.210.8 (8.3) Y = (A + K0.24 0.8) a (8.4) Y = AK L1-a O (8.1) O (8.1) and (8.2) O (8.2) and (8.3) O (8.1) and (8.4) O (8.4)Suppose that aggregate production for an economy is given by: Y = AK0.5 L0.5 If A=2, L= 16 and K=25, the level of real GDP for the economy is: O 42 800 O 320,000 O 20 O 40Suppose that aggregate production for an economy is given by: Y = AK0.5 L0.5 Which of the following statements is correct? There are constant returns to scale in A, L and K. There are constant returns to scale in L and K. There are constant returns to scale in A and L or in A and K. There are constant returns to scale in L alone. There are constant returns to scale in K alone.real GDP (Y) Y=F(A,K,L) Labour (L) Based on the diagram, which of the following must be a property (or feature) of the aggregate production function? O Diminishing returns to scale. Constant returns to scale. Diminishing marginal product of labour. O Diminishing marginal product of capital. O Diminishing marginal product of technology