1.Suppose The Relationship Between Output And The Factors Of Production In An Economy Can Be Approximated By The Following Cobb-Douglas Production Function: Y=AKaL(1-A) , Where A Is The Multifactor Productivity, K Is The Capital, A=0.4 Is The Input Share Of Capital And L Is The Number Of Hours Worked. If Capital K Is Increased By 40%, By How Much Will Output
1.Suppose the relationship between output and the factors of production in an economy can be approximated by the following Cobb-Douglas production function:
Y=AKaL(1-a) ,
where A is the multifactor productivity, K is the capital, a=0.4 is the input share of capital and L is the number of hours worked.
If capital K is increased by 40%, by how much will output Y increase?
