Title: Fakeland has an aggregate production function Y = A. Last year, total output was USD 1000. This ...
Post by: Chocolate_Pie on Dec 19, 2022
Fakeland has an aggregate production function Y = A
. Last year, total output was USD 1000. This year, a storm hits Fakeland and destroys half of the country's total capital stock. On the other hand, improving education quadruples the average human capital of workers and there is a demographic boom that doubles the labor force. Assuming that there is no change to technology, what is TRUE of total efficiency units of labor and total output?
▸ Total efficiency units of labor stay the same; output is cut in half.
▸ Total efficiency units of labor is multiplied by 8; total output doubles.
▸ Total efficiency units of labor is multiplied by 3; total output doubles.
▸ Total efficiency units of labor double; output remains the same.
. Last year, total output was USD 1000. This year, a storm hits Fakeland and destroys half of the country's total capital stock. On the other hand, improving education quadruples the average human capital of workers and there is a demographic boom that doubles the labor force. Assuming that there is no change to technology, what is TRUE of total efficiency units of labor and total output?▸ Total efficiency units of labor stay the same; output is cut in half.
▸ Total efficiency units of labor is multiplied by 8; total output doubles.
▸ Total efficiency units of labor is multiplied by 3; total output doubles.
▸ Total efficiency units of labor double; output remains the same.
Title: Fakeland has an aggregate production function Y = A. Last year, total output was USD 1000. This ...
Post by: krafty on Dec 19, 2022
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