4. In an economy that works in accordance with the classical model, the production function is: Y=2KO L°, and boththe quantity of labour and capital are 100 units. The marginal product of labour can be written as MPL-KSL0,5. Answerin the table below.a) Calculate GDP.b) Calculate the percentage of labour income within GDP.c) Calculate the equilibrium real wage.a) GDP:b) percantage of labour income:c) equlibrium real wage:

Production function; Y = 2K0.5 L0.5given K and L both are 100 units

4. In an economy that works in accordance with the classical model, the production function is: Y=2K0 L0S, and both the quantity of labour and capital are 100 units. The marginal product of labour can be written as MPL-K L0,5. Answer in the table below. a) Calculate GDP. b) Calculate the percentage of labour income within GDP. " c) Calculate the equilibrium real wage. ( a) GDP: b) percantage of labour income: c) equlibrium real wage:

4. In an economy that works in accordance with the classical model, the production function is: Y=2K0 L0S, and both the quantity of labour and capital are 100 units. The marginal product of labour can be written as MPL-K L0,5. Answer in the table below. a) Calculate GDP. b) Calculate the percentage of labour income within GDP. " c) Calculate the equilibrium real wage. ( a) GDP: b) percantage of labour income: c) equlibrium real wage:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. In an economy that works in accordance with the classical model, the production function is: Y=2KO L°, and both
the quantity of labour and capital are 100 units. The marginal product of labour can be written as MPL-KSL0,5. Answer
in the table below.
a) Calculate GDP.
b) Calculate the percentage of labour income within GDP.
c) Calculate the equilibrium real wage.
a) GDP:
b) percantage of labour income:
c) equlibrium real wage:

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