Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 3, Problem 1AP
a)
To determine
The impact of an increase in total factor productivity on the graph of production function relating output to capital and output to labor.
b)
To determine
To show: that a 10% increase in total factor productivity also increases the MPK and the MPN by 10% at any level of capital and labor.
c)
To determine
The effect of beneficial supply shock on MPK and MPN.
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Students have asked these similar questions
5. A company that produces auto parts has a production function of Q = 300 L-75 K-5.
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If L= 250 and K= 25, what is the output of auto parts?
If L increases to 350, what is the output of auto parts?
What does the change in output show regarding labor as a factor of production?
Give typing answer with explanation and conclusionĀ
Ā
Suppose an economy has an increase in labor input of 60 percent, while output has increased by 100 percent. Assuming no change in total factor productivity, calculate the percentage increase in the capital input. (Use the Cobb-Douglas production function Y = A K0.3L0.7)
2. Consider a Cobb-Douglas production function with three inputs. K is capital (the number of
machines), L is labor (the number of workers), and H is human capital (the number of college
degrees among the workers). The production function
Y = K2/6 L3/6 H1/6
a) Derive an expression for the marginal product of labor. How does an increase in the amount of
human capital affect the marginal product of labor? (Hint: The marginal product of labor MPL is
found by differentiating the production function (Y) with respect to labor (L))
b) Derive an expression for the marginal product of capital. How does an increase in the amount
of human capital affect the marginal product of capital? (Hint: The marginal product of capital
MPK is found by differentiating the production function (Y) with respect to capital (K)).
Chapter 3 Solutions
Macroeconomics
Ch. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - Prob. 1NPCh. 3 - Prob. 2NPCh. 3 - Prob. 3NPCh. 3 - Prob. 4NPCh. 3 - Prob. 5NPCh. 3 - Prob. 6NPCh. 3 - Prob. 7NPCh. 3 - Prob. 8NPCh. 3 - Prob. 9NPCh. 3 - Prob. 10NPCh. 3 - Prob. 1APCh. 3 - Prob. 2APCh. 3 - Prob. 3APCh. 3 - Prob. 4APCh. 3 - Prob. 5APCh. 3 - Prob. 6APCh. 3 - Prob. 7AP
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