Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show your work D Question 12 1 pts (*) Consider the production function Y = F (K, L) = AK + BL. where A

Please show your work

image text in transcribed
D Question 12 1 pts (*) Consider the production function Y = F (K, L) = AK + BL. where A > o and B > 0 are two positive real numbers. Assuming the rental market for capital is perfectly competitive, the rental price of capital is . A O AK O A A+ B O AK A+ B O A AK + BK D Question 13 1 pts (*) The labor share of income is defined as. and it is approximately equal to in the US. (Notations: Y is GDP, Lis labor force, K is the stock of capital, w is the real wage, and r is the rental price of capital) O L/Y; 50% O K/Y; 30% O WL/Y; 70% O wL/(rK); 40% O w/Y; 30%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Econometric Analysis

Authors: William H. Greene

5th Edition

130661899, 978-0130661890

More Books

Students also viewed these Economics questions

Question

"Compute the following integral:" b) In(t3) 05 dt

Answered: 1 week ago