Question
In the notes, we assumed that the coefficient on the Cobb-Douglas production function had a value of 1. But, for the sake of this question,
In the notes, we assumed that the coefficient on the Cobb-Douglas production function had a value of 1. But, for the sake of this question, assume it increases from 1 to a value of 1.5. Describe what would happen in our graph. Comment on the steady-state values of capital, production, and income.
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
