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Suppose that the production function is Cobb- Douglas with parameter = 0.3. What fractions of income do capital and labour receive? Suppose that immigration raises
- Suppose that the production function is Cobb- Douglas with parameter = 0.3.
- What fractions of income do capital and labour receive?
- Suppose that immigration raises the labour force by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage?
- Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage?
- Suppose that a technological advance raises the value of the parameter A by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage
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