Suppose the production function is given by Q = 2K + L. If w = $4 and r = $4, how many units of K and L will be utilized in the production process?
A. All L and no K.
B. All K and no L.
C. A combination of K and L not represented above.
D. Equal amounts of K and L.
Answer: B
Economics
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Suppose an economy has output of 2100, government spending of 40, consumption of 1600, and absorption of 1940. Calculate the equilibrium values of investment and net exports
What will be an ideal response?
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