1. In an economy with production function Y = 1.5 ×K^0.3*L^0.7, K = 343, and L = 512. If factor markets are in equilibrium, then the rental price of capital is (approximately) __0.6______, and the real wage is (approximately) ___0.9_____.
2. An economy's total labor income is $2 trillion, and total capital income is $1 trillion. In the Cobb-Douglas production function, the exponent on capital is ___1/3_____.
3. In a steady-state economy with no population growth, output per worker is 33, the saving rate is 20 percent, and the depreciation rate is 11 percent. The level of capital per worker is __60______.
4. In a steady-state economy with 4 percent population growth, capital per worker is 90, the saving rate is 25 percent, and the depreciation rate is 11 percent. The level of output per worker is ___54 or 38 or 195_____.
5. If output per worker in a steady state is $30,000, depreciation is 13%, the population growth rate is two percent, and the saving rate is 20%, what is the steady state capital-labor ratio? $40000
6. Output per worker is 50, the saving rate is 15 percent, the population is growing at one percent, depreciation is 9 percent, and the capital-labor ratio is 80. What happens to the capital labor raiot? (Increase or decrease) Increasing.