Suppose That the Production Function for the Economy Is Y

question 17

Multiple Choice

Suppose that the production function for the economy is Y = AK⁰.⁵ᴸ⁰.⁵.If the capital stock ?= 40 000,the quantity of labour = 10 000,and the efficiency index = 3,the equilibrium real wage is

• A) $3.
• B) $4.50.
• C) $9.
• D) $16.67.

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Definitions:

Macroeconomic Policy

Government actions and strategies designed to influence overall economic performance, including unemployment rates, inflation, and economic growth.

Inflation Target

An inflation target is a central bank's established rate of inflation as a goal to guide monetary policy decisions.

Central Bankers

Officials responsible for overseeing a country's monetary system and policy, including controlling the money supply and interest rates.

Active Approach

is a strategy in management or investing that involves taking specific actions to achieve a particular goal, as opposed to a passive or laissez-faire approach.