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Help on Intermediate Macroeconomics question 2. Suppose the production lnction in medieval Europe is Y = K0'5L0'5, where K is the amount of land and

Help on Intermediate Macroeconomics question

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2. Suppose the production lnction in medieval Europe is Y = K0'5L0'5, where K is the amount of land and L is the amount or labor. The economy begins, with 100 units of labor and 100 units of land. Use a calculator and equations in the chapter to nd a numerical answer to each of the following questions. How much output does the economy produce? What are the wage and rental price of land? What share of output does labor receive? What if the plague kills half the population, what is the new level of output? What are the new wage and rental price of land? What is labor's share of output now? rm 9-? 53's

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