Question: 1.The production function says that Real GDP (Y) is a function of two factors , Labor (L) and Capital (K) . Assume that capital (K)

1.The production function says thatReal GDP (Y)is a function of two factors, Labor (L)andCapital (K).Assume that capital (K) is fixed at 100.When L is 300, Y is 1000; when L is 400 Y is 1500, when L is 500 Y is Y is 1900; and when L is 600 Y is 2,200.Draw a graph of the production function using the data above.

What would happen to your graph in general (obviously you don't know what the real numbers would be) ifcapital increased from 100 to 200 units?

2.Draw a graph of the labor market in equilibrium at a real wage rate of $25 and quantity of labor of 100.Show on 4 different graphs what would happen to real wage rates and labor quantity if a) labor supply decreases, b) labor supply increases, c) labor demand decreases, d) labor demand increases.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

An advantage of MAPE as a measure of forecast error is that: An advantage of MAPE as a measure of forecast error is that: each error is taken as a percent of the previous period forecast so you can...

Problem 1. Solow model: balanced growth path and convergence Consider the standard Solow model, where the production function is the Cobb-Douglas function Y = K (AL)*, where Yis GDP, K is capital. L...

Economists assume that Group of answer choices individuals behave in unpredictable ways. consumer behavior is explained by the existence of unlimited resources. people put other people's interests...

Question 1 Not yet answered Marked out of 1.00 Flag question Question text In the simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption,...

Please HELP !! Question 1. (20 points) Suppose, we can use a Cobb-Douglas production function to estimate real national output or real GDP (Y) of the US economy as Yt=AKL1, where t indicates the...

~ 12 A A Aar Find AaBbCcDc|AaBbCcD. AaBbC( AaBb AaBbCcD 4 Replace X X A~ ~ A 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 Select Font Paragraph Styles Editing or edit files, you'll need to...

Help me to understand this.. Section 1. (Suggested Time: 45 Minutes) For 3 of the following 6 statements, state whether the statement is true, false, or uncertain, and give a complete and convincing...

8:14 | ? -l Part I. Multiple Choice Question (pick up only ONE correct answer). 1. Which of the following about Cobb-Douglas production function is correct 2 A) Cobb-Douglas function has a changing...

Help help plz. 2. What is precautionary saving? What assumptions are needed for precautionary savings to arise? Does precautionary saving resolve some empirical puzzles in consumption...

In need of the solutions to this questions. produced by firm 1 and firm 2 in a SPNE? Find the market price po and firm profits, nj and no. 13.3. Suppose there are n identical firms in an oligopoly...

The trial balance below is for Lings Landscaping Service of Merritt for December 31, 2012. Adjustment data to update the trial balance: a. Rent expired, $600 b. Landscaping supplies on hand...

The Community Youth Center (CYC) Corporation failed to pay its annual registration fee in 2000 and was automatically dissolved by the State Corporation Commission. CYC continued to operate as a...

? _ _ _ a r e t h e p a t t e r n s o f r e l a t i n g t o , o r i n t e r a c t i o n s b e t w e e n , f a m i l y m e m b e r s .

Question: TXX5767 Xavier is unmarried. At his death in 2009, Xavier's will be provided for the creation of a trust into which his entire estate was to be transferred ($7 mil. less $1,575,000 estate...

It's time to think like a manager. how can a manager emphasize genuineness of corporate social responsibilities and activities in society?

Question: For the following sales of the business assets by a proprietorship, determine: (1) the amount of gain (loss) recognized, and (2) label the gain or loss as ordinary or Section 1231. For any...

Identifying How Machine Learning Can Solve Problems What problem would you like your machine learning model to solve? What output would you like your machine learning model to produce? How will you...

2. Develop a good and lasting relationship

1. Avoid conflicts in the relationship

3. What is happening here and now (1 is oriented towards the proactive, 2 towards the reactive and 3 is a balance between the two). c. Source of inspiration: When I communicate it is important for me...