The equation $Y = K ^ { a } L ^ { 1 - a }$ is called:
A) the Lucas production function
B) the Keynesian production function
C) the Friedman-Schwartz production function
D) the Cobb-Douglas production function
E) the Glass-Steagall production function

Question

Quizplus · Accepted Answer

The equation $Y = K ^ { a } L ^ { 1 - a }$ is known as the Cobb-Douglas production function, which represents the relationship between two or more inputs (typically capital and labor) and the amount of output produced.

The Equation Y=KaL1−aY = K ^ { a } L ^ { 1 - a }Y=KaL1−a

The Equation $Y = K ^ { a } L ^ { 1 - a }$