Suppose the aggregate production function is given by the following: Y = N. We know that...
Suppose the aggregate production function is given by the following: Y = N. We know that marginal productivity of labour is:
Question 6 options:
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Homework Answers
Answer
Option 5
1
The marginal product of labor =first partial differentiation of the production function with respect to labor
dY/dN=1
The marginal product of labor is 1 and constant at all levels of inputs.
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Suppose the aggregate production function is given by the
following: Y = N. We know that...
N-1 N=2 N-4 N-16 Table 3: Question 4, Part2 Question 4: The Aggregate Production Function (30...
N-1 N=2 N-4 N-16 Table 3: Question 4, Part2 Question 4: The Aggregate Production Function (30 Marks) This question focuses on labour productivity, labour demand, and generally on the production function. Assume that the Aggregate Production Function is represented by the following equation: Y stands for output, K stands for the capital stock, N stands for the number of people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. α and β are parameters whose values are between 0 and 1. a) Derive an analytical expression for the marginal product of capital (MPK),...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. a and B are parameters whose values are between O and I a) Derive an analytical expression for the marginal product of capital (MPK),...
Suppose the representative firm’s production function is Y = zK 0.5N 0.5 . A. Find the...
Suppose the representative firm’s production function is Y = zK 0.5N 0.5 . A. Find the marginal product of labour. Are there diminishing returns to labour? B. If the real wage paid to labour is w, determine the representative firm’s demand for labour (Nd ) as a function of w, A and K, assuming the firm maximizes profit. C. Find and interpret the following derivatives: (∂N d /∂w), (∂N d /∂z), (∂Nd /∂K). D. Draw rough graphs to explain what...
1) An economy has the following aggregate production function: Y= Ak^1/3L^2/3 and capital stock, labour supply...
1) An economy has the following aggregate production function: Y= Ak^1/3L^2/3 and capital stock, labour supply and total factor productivity of 512, 1000, and 5 respectively. a) What is the effect of a 50% change in the capital stock on the marginal product of labour and the marginal product of capital? b) What is the effect of this change in the capital stock on Output and Consumption, if taxes are 800 and the Marginal Propensity to Consume is 2/3? I...
Assume that the aggregate production is given by the following: Y stands for output, K stands...
Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. a and B are parameters whose values are between 0 and 1 a) Derive an analytical expression for the marginal product of capital (MPK), marginal product of labour (MPN), and marginal product...
3. (55 points total) An economy's aggregate production function is given by Y- A K N-N2....
3. (55 points total) An economy's aggregate production function is given by Y- A K N-N2. The marginal product of labor for this production function is MPN A K- 2N. (a) (10 points) Assume that A- 8 and K- 10. Suppose that the labor supply function for this economy is given by NS 20+ 2w. Find the equilibrium real wage rate, the full employment level of employment, and the full-employment level of output for this economy Draw a production function...
Assume that the aggregate production is given by the following: Y stands for output, K stands...
Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. a and B are parameters whose values are between 0 and 1 We were unable to transcribe this imaged) Suppose labour efficiency declines to A 1, what happens to the equilibrium levels...
1. Suppose that I give you an aggregate production function: Y = AK^(1/2)N^(1/2) a) Suppose that ...
1. Suppose that I give you an aggregate production function: Y = AK^(1/2)N^(1/2) a) Suppose that A = 1 and K = 4. Derive the labour demand curve. b) If the labour supply curve is: w = (1 − t) √ N^s Solve for the equilibrium real wage and full employment level of employment when t = 0.75. What is the full employment level of output? c) Suppose that A(prime aka future) = 1/2 temporarily. K is unchanged and the...
Suppose that the aggregate production is given by , where Y is real GDP, K is...
Suppose that the aggregate production is given by
, where Y is real GDP, K is the total capital stock and L is the
(constant) labour force. Assume that aggregate investment is equal
to aggregate savings and that the depreciation rate is 0.05, hence
the total capital stock evolves according to K=sY − 0.05K, where s
is the savings rate.
1) Under the stated assumptions for this question, what is the
steady-state level of capital per worker when the saving...
N-1 N=2 N-4 N-16 Table 3: Question 4, Part2 Question 4: The Aggregate Production Function (30 Marks) This question focuses on labour productivity, labour demand, and generally on the production function. Assume that the Aggregate Production Function is represented by the following equation: Y stands for output, K stands for the capital stock, N stands for the number of people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. α and β are parameters whose values are between 0 and 1. a) Derive an analytical expression for the marginal product of capital (MPK),...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. a and B are parameters whose values are between O and I a) Derive an analytical expression for the marginal product of capital (MPK),...
Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. a and B are parameters whose values are between 0 and 1 a) Derive an analytical expression for the marginal product of capital (MPK), marginal product of labour (MPN), and marginal product...
3. (55 points total) An economy's aggregate production function is given by Y- A K N-N2. The marginal product of labor for this production function is MPN A K- 2N. (a) (10 points) Assume that A- 8 and K- 10. Suppose that the labor supply function for this economy is given by NS 20+ 2w. Find the equilibrium real wage rate, the full employment level of employment, and the full-employment level of output for this economy Draw a production function...
Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. a and B are parameters whose values are between 0 and 1 We were unable to transcribe this imaged) Suppose labour efficiency declines to A 1, what happens to the equilibrium levels...
Suppose that the aggregate production is given by
, where Y is real GDP, K is the total capital stock and L is the
(constant) labour force. Assume that aggregate investment is equal
to aggregate savings and that the depreciation rate is 0.05, hence
the total capital stock evolves according to K=sY − 0.05K, where s
is the savings rate.
1) Under the stated assumptions for this question, what is the
steady-state level of capital per worker when the saving...
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