Answer this question according to materials from Chapter 15 in the textbook and lecture discussion. (a) Suppose the aggregate production function Y = F(K,N, H,R)
Answer this question according to materials from Chapter 15 in the textbook and lecture discussion. (a) Suppose the aggregate production function Y = F(K,N, H,R) where Y is output, K is physical capital, N is number of workers, H is human capital, and R represents access to resources. Demonstrate how we can modify this aggregate production function into an indicator of living standard measurement with the assumption of long-run competitive equilibrium. Explain why most studies focus on the relationship between Y/ N and K / N . Use a properly labeled graph to help you explain the concept of \"catch-up\" effect on living standard between the \"rich\" and the \"poor\
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