Consider an economy with a representative household that consists of = 100 workers and owns $81 million capital (L = 100; K 81). The representative firm with Y = K¹/2L¹/2 rents capital and hires labor from households. Assume A = 1 (TFP). Solve for equilibrium and enter the equilibrium quantities of Y, K, w, in the blanks below - Y = million K= million W =
Consider an economy with a representative household that consists of = 100 workers and owns $81 million capital (L = 100; K 81). The representative firm with Y = K¹/2L¹/2 rents capital and hires labor from households. Assume A = 1 (TFP). Solve for equilibrium and enter the equilibrium quantities of Y, K, w, in the blanks below - Y = million K= million W =
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider an economy with a representative household that consists of
100 workers and owns $81 million capital (L = 100; K = 81). The
representative firm with Y = K¹/²L¹/2 rents capital and hires labor from
households. Assume A = 1 (TFP). Solve for equilibrium and enter the
equilibrium quantities of Y, K, w, in the blanks below -
Y =
million
million
K=
W =](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39e04996-9d3d-446a-8f42-a733763bfbfe%2F7bc0dbd7-90a7-4fda-b6b6-54671a258e74%2Foc2m3in_processed.png&w=3840&q=75)
Transcribed Image Text:Consider an economy with a representative household that consists of
100 workers and owns $81 million capital (L = 100; K = 81). The
representative firm with Y = K¹/²L¹/2 rents capital and hires labor from
households. Assume A = 1 (TFP). Solve for equilibrium and enter the
equilibrium quantities of Y, K, w, in the blanks below -
Y =
million
million
K=
W =
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