Question: 10. Suppose that the following Cobb-Douglas production function represents the economy of Chile: Y = F1K, L2 = AK0.4L0.6. Assuming Chile's national income equals $170

10. Suppose that the following Cobb-Douglas production function represents the economy of Chile: Y = F1K, L2 = AK0.4L0.6. Assuming Chile's national income equals $170 billion, calculate real labor income and real capital income

of Chile: Y = F1K, L2 = AK0.4L0.6. Assuming Chile's national income

Share of total income Labor Income 0.65 share Capital 0.35 Income share Time

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