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What is total factor productivity and how is it calculated

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Reference no: EM13321704

In the production function, Y = A F(K, L), identify each variable. What does an increase in A mean?

If labor’s share of income is 80% and capital’s share of income is 20%, how would the Cobb–Douglas production function be written?

If both capital and labor increase by the same proportion, would the economy be expected to experience diminishing marginal returns?

What is total factor productivity, and how is it calculated?

Suppose that it is known that labor receives 25% of national income. With a Cobb-Douglas production function and an initial level of real GDP of $10,000, what happens to real GDP if both capital and labor double? 

Reference no: EM13321704

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