Suppose the production function is Y 100K0 25L0 75 a b Find the real rental rate (r, in terms of K and L) paid to a capital owner (Hint MPK dY dk) If K 81 and L 16, find i Y and r ii the total income of all capital owners iii the fraction of total income shared by all capital owners Suppose the pr...

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Suppose the production function is Y = 100K0.25L0.75 a. b. Find the real rental rate (r,...

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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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Posted Date: Nov 30, 2022 06:40 PM

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Suppose the production function is Y = 100K0.25L0.75 a. b. Find the real rental rate (r,...

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Macroeconomics

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