Suppose than an economy has output Y = AK 0.3L 0.7, that Y equals $42 trillion, capital K is $64 trillion, and labor L is 125 million workers. Given this information, what is the closest approximation of total factor productivity A? O less than 0.01 O around 0.25 O roughly 0.33 O close to 0.4 O exactly 144

Suppose than an economy has output Y = AK 0.3L 0.7, that Y equals $42 trillion, capital K is $64 trillion, and labor L is 125 million workers. Given this information, what is the closest approximation of total factor productivity A? O less than 0.01 O around 0.25 O roughly 0.33 O close to 0.4 O exactly 144

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.8P

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