Suppose that the production function for the economy is Y = AK⁰.⁵ᴸ⁰.⁵.If the capital stock = 40 000,the quantity of labour = 10 000,and the efficiency index = 3,real GDP is

Name: Suppose that the production function for the economy is Y = AK⁰.⁵ᴸ⁰.⁵.If the capital stock = 40 000,the quantity of labour = 10 000,and the efficiency index = 3,real GDP is
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Real GDP = AK⁰.⁵L⁰.⁵ = 3 * 40000⁰.⁵ * 10000⁰.⁵ = 3 * 200 * 100 = $60,000

Suppose That the Production Function for the Economy Is Y