Given the Aggregate Production Function Y = a K0

question 48

Multiple Choice

Given the aggregate production function Y = A K0.3L0.7, 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:

Political Scientists

Experts who study the theory and practice of politics, governance, and political behavior, often analyzing systems of government, political activities, and political thought.

Unilateral

An action or decision made by one party or nation without the agreement or consultation of others, often in the context of international relations or policy-making.

Sequential

Pertaining to or describing events, processes, or items in a specific order or sequence.

Reciprocal Interdependence

A situation or relationship in which two or more entities depend on each other equally for resources, information, or outcomes.