Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K and N each increase by 5 percent, and A is unchanged, by how much does Y increase?

What is the difference between income and wealth?

What will be an ideal response?

Which of the following will NOT cause the public debt to change?

A) collection by the government of $200 billion more in taxes than it spends B) government budget deficit C) government budget surplus D) balanced budget