Answer and Breif explantion Suppose you are given the aggregate production function for an economy and the amount ofavailable capital increases for this economy. Holding labor constant, this increase in capital willcause the MPK to increase.Select one:O TrueFalse Answer the following questions based upon the following production function for the aggregateeconomy:Y = F(K, L) = A K0.6L0.4%3DWhere Y is aggregate output, A is a measure of available technology, K is capital and L is labor.When graphed, the production function will be concave to the origin, exhibiting increasingMarginal Product of Capital (MPK)Select one:TrueO False

Since you have asked multiple questions, we will solve the first question for you. If you want any…

Suppose you are given the aggregate production function for an economy and the amount of available capital increases for this economy. Holding labor constant, this increase in capital will cause the MPK to increase. Select one: O True False

Suppose you are given the aggregate production function for an economy and the amount of available capital increases for this economy. Holding labor constant, this increase in capital will cause the MPK to increase. Select one: O True False

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Answer and Breif explantion

Suppose you are given the aggregate production function for an economy and the amount of
available capital increases for this economy. Holding labor constant, this increase in capital will
cause the MPK to increase.
Select one:
O True
False

Answer the following questions based upon the following production function for the aggregate
economy:
Y = F(K, L) = A K0.6L0.4
%3D
Where Y is aggregate output, A is a measure of available technology, K is capital and L is labor.
When graphed, the production function will be concave to the origin, exhibiting increasing
Marginal Product of Capital (MPK)
Select one:
True
O False

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