Suppose That in 2002 Freedonia Had GDP Equal to 2000

question 40

Multiple Choice

Suppose that in 2002 Freedonia had GDP equal to 2000 million, the capital stock was equal to 1700 million, the number of employees equaled 70 million. The production function is Y = AK^0.25N0.75. Total factor productivity of the economy in that year was approximately equal to

• A) 0.09.
• B) 2.61.
• C) 4.19.
• D) 12.87.

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