If the GDP production function is: Y=AK0.5L0.5 and if A,K, and L are all 100 , the marginal production of capital is: 50 100 200 1000 Assume that the production function is Cobb-Douglas as follows: Y=K0.3L0.7 In this neoclassical model, if the labor force increases by 10 percent, then output: increases by about 10 percent. increases by about 7 percent. increases by about 3 percent. does not increase since the new workers are unemployed. Macroland's total GDP is $22 trillion, and the labor force is 200 million. The GDP production function in Macroland is given by: Y=K0.3L0.7 What is the approximate wage of the US workers? $52,000 $15 $77,000 None of the above or cannot be determined from the information given. Y=GDP C= consumption 1= investment G= government expenditure EX= Exports IM = imports Someone writes the equation for GDP as Y=C+1+G+EX This equation is: correct. Should be written as Y=C+G+EX+IM Imports should be subtracted from the RHS above because we are measuring Gross Domestic Product Imports should be subtracted from the RHS above because we are measuring gross domestic product. not Net Domestic Product. Private saving is: income minus consumption minus government spending. disposable income minus consumption. disposable income minus government spending. taxes minus government spending