Given the Aggregate Production Function Y = a

question 61

Multiple Choice

Given the aggregate production function Y = A

,the Solow residual equals ________ when Y is 60,K = 5 and L = 5.

• A)2.4
• B)35
• C)25
• D)12

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one could have received by taking a different decision.

Attending College

The act of enrolling in and going to a college or university to pursue higher education.

Short-Run Effects

Immediate or temporary outcomes of a policy or economic change that manifest before long-term adjustments can take place.

Quantity Of Money

The total amount of money (cash, coins, and bank deposits) in circulation within an economy.