Suppose the economy's production function is Y = AK0.3N0.7. When K = 1000, N = 50, and A = 15, what is Y?

What are the defining features of classical macroeconomics and what policies do classical macroeconomists recommend?

What will be an ideal response?

If a nation protects an industry because it believes that there are positive externalities in the production process, it is asserting that the free market will

A) produce less than is optimal from society's point of view. B) produce more than is optimal from society's point of view. C) produce the correct amount but charge too high a price. D) produce the correct amount but charge too low a price. E) None of the above.