Techland's aggregate production function is Y = A × K1/3 × H2/3. Find out the contribution of technology to Techland's GDP if its gross domestic product is $2,000,000, capital stock is 125,000 units and total efficiency units of labor is 1,000,000
What will be an ideal response?
The contribution of technology to Techland's gross domestic product can be determined by using the formula: A = Y/(K1/3 × H2/3). In this case, Y = $2,000,000, K = 1,000, and H = 125,000. Therefore, A = 2,000,000/(1,25,0001/3 × 100,0002/
You might also like to view...
Crowding out, following an increase in government spending, results from (the exchange rate is the foreign exchange price of the domestic currency)
A) higher interest rates and a lower exchange rate. B) lower interest rates and a lower exchange rate. C) lower interest rates and a higher exchange rate. D) higher interest rates and a higher exchange rate.
Recessions in Canada and Mexico would cause
a. the U.S. price level and real GDP to rise.
b. the U.S. price level and real GDP to fall.
c. the U.S. price level to rise and real GDP to fall.
d. the U.S. price level to fall and real GDP to rise.
The theory of regulatory behavior that predicts that the "regulators" eventually will become controlled by the "regulated" is called
A. the market failure hypothesis. B. the the share-the-gains, share-the-pains hypothesis. C. the capture hypothesis. D. the asymmetric information hypothesis.
The amount by which aggregate expenditures exceed those associated with the full- employment level of domestic output can best be described as:
A. A recessionary expenditure gap B. An inflationary expenditure gap C. The multiplier D. The average propensity to save