1a) Assume a standard Cobb-Douglas production function that takes the form: Y_t = AK^r_tL^1-r_t. Use this production for two countries: US and Brazil. In the data, capital per person in Brazil is 0.202 times that of the US. Let capital share be 1/3. Find the output per person in Brazil relative to the US if Brazil and US had same value of A?

1b)Then, if that the observed per-capita GDP of Brazil is 0.252 times that of the US. What is the implied value of A for Brazil (relative to US) if we wanted to fit the production function model correctly?

1c)write two examples that could explain differences in A between US and Brazil

1d)Referring the use of various ways to construct real GDP. Briefly explain why do we prefer to use chain-weighted index?