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taupefox923Lv1
28 Sep 2019
Assume that a country's production function is Y = AK^(1/2)L^(1/2)
a. What is the per-worker production function y = f(k) if A = 1?
b. Assume that the country possesses 40,000 units of capital and 10,000 units of labor.
What is Y? What is labor productivity computed from the per-worker production
function? Is this value the same as labor productivity computed from the original
production function?
c. Assume that 10 percent of capital depreciates each year. What gross saving rate is
necessary to make the given capital
Assume that a country's production function is Y = AK^(1/2)L^(1/2)
a. What is the per-worker production function y = f(k) if A = 1?
b. Assume that the country possesses 40,000 units of capital and 10,000 units of labor.
What is Y? What is labor productivity computed from the per-worker production
function? Is this value the same as labor productivity computed from the original
production function?
c. Assume that 10 percent of capital depreciates each year. What gross saving rate is
necessary to make the given capital
Chika IlonahLv10
28 Sep 2019
