Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 17, Problem 6WNG
To determine
Change in production function and thereby change in the Long Run
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Classify each of the following as a movement along or a shift of the production function and provide a justification for your choice.
(1)An increase in the number of machines used in production
(2) An increase in the population growth rate
(3) A new technological innovation
In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
Question options:
a) physical capital
b) a production function
c) human capital
d) an aggregate production function
The aggregate production function is y=3KL. If they are 30 units of capital and 40 units of labor, what is aggregate output?
What is labor productivity?
What is capital productivity?
Chapter 17 Solutions
Economics (MindTap Course List)
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Similar questions
- Assume that the growth rate of the capital stock in each period is determined by the level of output in the previous period. 1) An economy of 80 million people has ten percent of them engaged in research and development, where their productivity is 0.0035. The economy is on a balanced growth path, when suddenly 2.88 million people move from goods production into R&D, raising the fraction there to 13.6 percent. In the one period that begins with this labor reallocation, the growth rate of output is ________. [Refer to the instruction above.] A) 2.8% B) 0.0% C) 3.8% D) 2.2%arrow_forwardWrite the production function (human capital (H) is included in TFP) and the logarithmic form of this production function then explain why the GDP growth will be at the end ofa given long period lower than at the beginning of this period, assuming that the average contribution of TFP to GDP average growth during the period is constant.arrow_forwardThe following graph shows a variety of possible production functions (PFs) in an imaginary economy, assuming constant levels of human capital and technology. Because human capital and technology remain unchanged, each of these production functions represents a different level of the capital stock. Fill in the table with the curve that corresponds to each of the capital stock levels described. Levels of Capital Stock This corresponds to which curve? (PF1, PF2, PF3) Highest Middle Lowest Fill in the blank: The slope of the line connecting the origin to point B is __________ (options: flatter, steeper) than the slope of the line connecting the origin to point A, because the slope of such a line is equivalent to ___________ (options: productivity, the marginal physical product of labor, marginal cost).arrow_forward
- Please answer the following question as soon as possible. Thanks a lot! Imagine we live in a classical world. Suppose that the production function is ? = ?^(1/2)?^(1/2), where L is the amount of labor and K is the amount of capital. The economy has 100 units of labor and 100 units of capital.arrow_forwardSuppose you are given the aggregate production function for an economy and the amount of available technology increases for this economy. If labor and capital constant are held constant, increase in technology will causes labor productivity to decrease. True Falsearrow_forwardIf there is a sharp increase in the number of workers, holding all other things constant, which of the following is likely in the short term? a) increase real GDP per person but decrease real GDPb) raise real GDP but decrease real GDP per personc) raise both real GDP and real GDP per persond) decrease both real GDP and real GDP per personarrow_forward
- Classify each of the following as a movement along or a shift of the production function and provide a justification for your choice. An increase in the number of machines used in production, an increase in the population growth rate, a new technological innovation,the government invests in a new entrepreneurship training program, the government implements major reforms to make it easier to transact businessarrow_forwardWhy is a Cobb-Douglas production function useful for analyzing economic growth?arrow_forward
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