Question: (7.2) Using a spreadsheet, consider the Cobb-Douglas production function: where Yt is output at time t; Kt is capital; Lt is labor hours worked; At

(7.2) Using a spreadsheet, consider the Cobb-Douglas production function:

where Yt is output at time t; Kt is capital; Lt is labor hours worked; At is total factor productivity at time t; and b is 0.3. Analyze how the marginal productivity of labor changes when:

(a) A increases by 10%

(b) K increases by 10%

(c) L increases by 10%

(d) b falls from 0.4 to 0.3

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