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(Solved): On the supply side we have a Cobb-Douglas production function Y = A K 1 2 L 1 2 with technology para ...



On the supply side we have a Cobb-Douglas production function Y = A K 1 2 L 1 2 with technology parameter A = 300;capital K = 9 units and labour L = 100units. On the demand side: Y d = C + I + G (1) and the consumption function and the investment function are given respectively by: C = 400 + 0:8(Y T ) (2) I = 1555 65r (3) Government expenditures are given by G = 800, taxes are given by T = 300, and r is the real interest rate. 1. The amount of output supplied is ______________ units



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