3)The equation y= Ak 1/3 has what two important implications? Output per person tends to be higher...
Question:
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 |