Suppose That the Production Function Is Y = AK⁰

question 9

Essay

Suppose that the production function is Y = AK⁰.⁷ᴸ⁰.³,the number of workers equals 800,the capital stock is $150 000,and total factor productivity is 3.What is the value of real GDP? What will happen to real GDP if total factor productivity doubles?

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Definitions:

Volt-amperes

A unit of electrical power in an AC circuit equivalent to one volt multiplied by one ampere, used to measure apparent power.

VARs

An abbreviation for Volt-Ampere Reactive, a unit of reactive power in an electrical system, representing the non-working power in an AC circuit.

Watts

The unit of power in the International System of Units (SI), equivalent to one joule per second.

Peak-to-peak

The difference in voltage between the highest and lowest points in a waveform.