Suppose the Economy's Production Function Is Y = AK⁰

question 12

Multiple Choice

Suppose the economy's production function is Y = AK^0.3N^0.7.If K = 2000,N = 100,and A = 1,then Y = 246.If K and N both rise by 20%,and A is unchanged,by how much does Y increase?

• A)5%
• B)10%
• C)15%
• D)20%

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Definitions:

Low Incomes

Economic situation where individuals or families earn significantly less than the average income level within a society.

Higher Incomes

Earnings that are above the average or median level, often associated with increased financial stability and purchasing power.

Dissociation

A psychological process involving a disconnection between thoughts, identity, consciousness, and memory, often as a defense mechanism to stress or trauma.

Posttraumatic Stress Disorder

A mental health condition that can develop in individuals who have gone through or seen a distressing event, marked by recurring memories, bad dreams, and intense worry.