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Consider the following economy:
Y = F(K,L) = 200K1/2L1/2 K = 121L = 81
C = 1,300 - 100r + 0.8(Y - T) I = 2,000 - 300rG = 2,800
T = 0.25Y
How do I calculate Real wage rate, labor income and real rental rate?
Give a function Y = AK^0.4 L^0.6
A. if K increase by 10% what is the percentage change in Y, MPK, and MPL?
B. if L increase by 10% what is the percentage change in Y, MPK, and MPL?
c. Is there evidence of diminishing marginal productivity?
37. What is the deadweight loss associated with the private market equilibrium? (a) X + Y. (b) F +K. (c) K+L. (d) I + J.