For an economy described by the production model where labor's share of income is constant and equal to 2/3, the rate of ir wages will be equal to Select one or more: a. The rate of increase of A or total factor productivity plus 2/3 times the rate of increase of capital per worker. b. The rate of increase of 2/3 times output per worker. c. The rate of increase of output per worker. d. The rate of increase of A or total factor productivity plus 1/3 times the rate of increase of capital per worker.
For an economy described by the production model where labor's share of income is constant and equal to 2/3, the rate of ir wages will be equal to Select one or more: a. The rate of increase of A or total factor productivity plus 2/3 times the rate of increase of capital per worker. b. The rate of increase of 2/3 times output per worker. c. The rate of increase of output per worker. d. The rate of increase of A or total factor productivity plus 1/3 times the rate of increase of capital per worker.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![For an economy described by the production model where labor's share of income is constant and equal to 2/3, the rate of increase of
wages will be equal to
Select one or more:
a. The rate of increase of A or total factor productivity plus 2/3 times the rate of increase of capital per worker.
O b. The rate of increase of 2/3 times output per worker.
C. The rate of increase of output per worker.
n d. The rate of increase of A or total factor productivity plus 1/3 times the rate of increase of capital per worker.
Consider a CES production function with the elasticity of substitution equal to 2.
What happens to the capital payment share if the rental to wage ratio rises?
Select one:
O a. It does not change.
O b. It increases.
O c. Not enough information is given to answer this question.
O d. It decreases.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58ae380a-9d23-41a5-8b5f-bbc21179f9a0%2F7d868ccd-9032-4b8d-8e1e-259fbade9c3c%2Fcry13e9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For an economy described by the production model where labor's share of income is constant and equal to 2/3, the rate of increase of
wages will be equal to
Select one or more:
a. The rate of increase of A or total factor productivity plus 2/3 times the rate of increase of capital per worker.
O b. The rate of increase of 2/3 times output per worker.
C. The rate of increase of output per worker.
n d. The rate of increase of A or total factor productivity plus 1/3 times the rate of increase of capital per worker.
Consider a CES production function with the elasticity of substitution equal to 2.
What happens to the capital payment share if the rental to wage ratio rises?
Select one:
O a. It does not change.
O b. It increases.
O c. Not enough information is given to answer this question.
O d. It decreases.
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