For a country, its national output or income (Y) follows a Cobb-Douglas function as

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below. For example, the function in 2020 is = 2 . HereKindicates total capital

2020

input andLis total labor input. And we have= 0.5.

(a) What is the share of capital and labor of total national income? If K is 36 and L is 100, how

much is the total output in 2020?

(b) In 2021, the government introduced tax credits for overseas investors. Thus, more capital is available in the market. At the same time, new technology has greatly improved production

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efficiency. So the Cobb-Douglas function in 2021 becomes = 2.5(1.2) . Then, how

much GDP has grown in 2021 compared with the year before (assumeis the same value).