The Aggregate Production Function Is Y = 2K⁰

question 74

Multiple Choice

The aggregate production function is Y = 2K^0.5L0.5. If there are 225 units of capital and 196 units of labor, aggregate output is

• A) 420 units.
• B) 508 units.
• C) 700 units.
• D) 842 units.

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