Suppose MP0: 0.? and MPK=10. ComputeAS, when A K: 'ID Answer: X Suppose that an economy's production function is CobbDouglas with parameter = 0.3 Suppose
Suppose MP0: 0.? and MPK=10. ComputeAS, when A K: 'ID Answer: X Suppose that an economy's production function is CobbDouglas with parameter = 0.3 Suppose that immigration increases the labor force by 10% 11 x 'I. What happens to total output (in percent)? Ba 11 x 2. What happens to the rental price of capital (in percent)? Ba 10 x 3. What happens to the real wage [in percent)? '35
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