Suppose that an economy’s production function is Cobb-Douglas with parameter alpha=0.3. One way to solve B.-D., assume numerical values, e.g.: Assume A=1, K=1, L0=1 and L1=1.1. What if a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output?

## “Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”