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3)The equation y= Ak1/3 has what two important implications? Output per person tends to be higher...

3)The equation y= Ak1/3 has what two important implications?

Output per person tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is higher.

Output per person tends to be lower when (1) the productivity parameter is higher and (2) the amount of capital per person is higher.

Output per person tends to be higher when (1) the productivity parameter is lower and (2) the amount of capital per person is higher.

Output per person tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is lower.

The population tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is higher.

4)

If the real interest rate is less than the marginal product of capital, firms are better off:

producing at a loss.

saving their earnings in an economywide financial market.

accumulating more inventory.

borrowing in financial markets and buying more capital.

none of the above
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