Question: Please show your work D Question 12 1 pts (*) Consider the production function Y = F (K, L) = AK + BL. where A

Please show your work

D Question 12 1 pts (*) Consider the production function Y = F (K, L) = AK + BL. where A > o and B > 0 are two positive real numbers. Assuming the rental market for capital is perfectly competitive, the rental price of capital is . A O AK O A A+ B O AK A+ B O A AK + BK D Question 13 1 pts (*) The labor share of income is defined as. and it is approximately equal to in the US. (Notations: Y is GDP, Lis labor force, K is the stock of capital, w is the real wage, and r is the rental price of capital) O L/Y; 50% O K/Y; 30% O WL/Y; 70% O wL/(rK); 40% O w/Y; 30%

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