1In an economy with production function Y = 15 ÃK^03*L^07, K = 343, and L = 512 If factor markets are in equilibrium, then the rental price of capital is (approximately) __06______, and the real wage is (approximately) ___09_____
2An economy’s total labor income is $2 trillion, and total capital income is $1 trillion In the Cobb-Douglas production function, the exponent on capital is ___1/3_____
3In a steady-state economy with no population growth, output per worker is 33, the saving rate is 20 percent, and the depreciation rate is 11 percent The level of capital per worker is __60______
4In a steady-state economy with 4 percent population growth, capital per worker is 90, the saving rate is 25 percent, and the depreciation rate is 11 percent The level of output per worker is ___54 or 38 or 195_____
5If output per worker in a steady state is $30,000, depreciation is 13%, the population growth rate is two percent, and the saving rate is 20%, what is the steady state capital-labor ratio? $40000
6Output per worker is 50, the saving rate is 15 percent, the population is growing at one percent, depreciation is 9 percent, and the capital-labor ratio is 80 What happens to the capital labor raiot? (Increase or decrease) Increasing