The equation $y = \bar { A } k ^ { 1 / 3 }$ has what two important implications?
A) Output per person tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is higher.
B) Output per person tends to be lower when (1) the productivity parameter is higher and (2) the amount of capital per person is higher.
C) Output per person tends to be higher when (1) the productivity parameter is lower and (2) the amount of capital per person is higher.
D) Output per person tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is lower.
E) The population tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is higher.

Question

Quizplus · Accepted Answer

The equation shows that output per person increases with a higher productivity parameter ($\bar{A}$) and more capital per person ($k$).

The Equation y=Aˉk1/3y = \bar { A } k ^ { 1 / 3 }y=Aˉk1/3

The Equation $y = \bar { A } k ^ { 1 / 3 }$