Question: need help with macroecon Solving the production model. Suppose the production function is given by Y = AK3/4[1/4 + 1/2 (a) Does the production function

need help with macroecon

Solving the production model. Suppose the production function is given by Y = AK3/4[1/4 + 1/2 (a) Does the production function exhibit constant returns to scale in K and L? (b) State the firm's problem and derive labor demand function and capital demand function. (c) Create a version of the general equilibrium model as in class (or see Table 4.1 in textbook). What are the five equations and five unknowns? (d) Solve these equations to get the solution to the model

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