Assume a production function is given by $Y = \bar { A } K _ { t } ^ { 1 / 3 } \bar { L } ^ { 2 / 3 }$ . If $\bar { A } = 2$
And $\bar { L } = 1$
, and the steady-state capital stock is 8.0, the steady-state level of output is about:
A) 8.0
B) 4.0
C) 45.4
D) 2.0
E) 22.6

Question

Quizplus · Accepted Answer

Substitute the given values into the production function: $Y = 2 \times 8^{1/3} \times 1^{2/3} = 2 \times 2 = 4.0$.

Assume a Production Function Is Given By Y=AˉKt1/3Lˉ2/3Y = \bar { A } K _ { t } ^ { 1 / 3 } \bar { L } ^ { 2 / 3 }Y=AˉKt1/3​Lˉ2/3

Assume a Production Function Is Given By $Y = \bar { A } K _ { t } ^ { 1 / 3 } \bar { L } ^ { 2 / 3 }$