Assume there are 2000 hou

Assume there are 2000 hou

Assume there are 2000 households in the economy. The production function is Y=3K^1/3 L^2/3. Assume theprice level of the economy remains at P=$10 all the time. The depreciation rate of capital is ? = 0.2 foreach period. In one period, each individual household has 4 units of labour and 0.5 unit of capital.a. For this period, how many units of labour are used in production? How many units of capital areused? (2?)b. What is the real GDP of this period? What is the nominal GDP of this period? What is the NetNational Product (in real term) in this period? (2?x3)c. What is the real wage rate in this period? (3?)d. What is the nominal rental price in this period? (3?)e. What is the interest rate in this period? (2?)

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