Question

• I don't know how to get the answers about question four and five

Over time, the share of capital in production has increased. Economist think that in a near future, production function for the economy will be: Y= K -4(AL).6. Using this function, what is the production function written in its intensive form? Selected Answer: y=k0.4

Answer 1

The production function is giren as yako (AL) 06 In inreosire form for production function be written as follows . Koru (AL) con O . AL: 0.47 NO ►l ya (k) :) whoras y ban output pur unit effective of cobon. y=-(*) Similarly, kak o a capiton per unit . or eftetine lobon, (6) It is given thor, population growth and dy Sarings para sa 10%. . depreciation rate a 52 5% are know technological progress a gaar. at steady state, we have .. 8.4 k) = (n+ges) ki » to x fony = (1+2+5) k. [o ya (k)= kod] * Kob 25/4. * la hot 2 145 (approa). in output pur effatine workos ir ya ***** = (1.45) = 116 whit (approx).

we have to uses of dorire output n toe equation deseribing or pus eftative workor . conculate - be equat. pus eftal sie we have to 0.4. nom, we have, ya kih >> (y) = 0.4 60.6.dk non, dk - growth and of capiton stock depends on. toro opposite forces which is given by Shk). Support ir amount of capital word in order to fore labor and technologicor growth and depreciation de e S. HX) - (nong +6) k. putting the values of snog.and & de a to%if(K) = (+%+ 2% +5%) k. at 2 309. *) - 8% from (2) - & (Y) = 0.44 +0%4(k) - 8% 67. how, y = 0.4 4 0 / 40% f(K) - 8% k7