MACROECONOMICS
10th Edition
ISBN: 9781319106072
Author: Mankiw
Publisher: MAC HIGHER
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Question
Chapter 9, Problem 4PA
(a)
To determine
The constant capital-output ratio.
(b)
To determine
The constant share of capital and labor in the economy’s income.
(c)
To determine
The total capital income and total labor income.
(d)
To determine
The real rental price of capital and the real wage rate.
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Which of the following graphs best represents the production possibility frontier of Country Y (Line Y), the production possibility frontier of Country Z (Line Z), and the production possibility frontier of this whole economy (Line W)? (Hint: Find W by adding the productive capabilities of Country Y and Z)
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