2) IfY = A× (100 +K/N), whereK= 1000,N= 50, andA=

2) If Y = A × (100 + K/N), where K = 1000, N = 50, and A =

10, what happens if K doubles and N doubles?

A) Y is unchanged.

B) Y increases by 50%.

C) Y doubles.

D) Y quadruples.

5) Suppose the economy's production function is Y = A . If K = 2000, N = 100, and A = 1, then Y = 246. If K rises by 20%, and A and N are unchanged, by how much does Y increase?

A) 30%

B) 10%

C) 6%

D) 3%

6) Suppose an economy has GDP equal to 2000 million, the capital stock is 800 million, and the number of

employees equals 150 million. The production function is Y=AK0.25 N0.75 Total factor productivity of the economy is approximately equal to

A) 0.88.

B) 5.77.

C) 8.77.

D) 12.87.

7) The table below represents Econalyst's macroeconomic data for Year 1 and Year 2.

Year