milo3685
milo3685
24.08.2021 • 
Business

Suppose that K doubles and A decreases by half. Construct a pair of well-labeled diagrams of equilibrium in the factor markets to show how the changes in A and K affect the supply of capital, the supply of labor, the real wage, and the real rental rate. Write down either in words or symbolically how the changes in K and A would affect output Y and consumption C.

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