If this economy has 1,200 workers in total, what is total GDP at time t, i.e., what is
𝑌
𝑡
?

Round your answer to the nearest integer.

Hint: Take advantage of the fact that
𝐾
𝑡
=
𝑘
𝑡
×
𝐿
𝑡
and/or
𝑌
𝑡
=
𝑦
𝑡
×
𝐿
𝑡
.

Question

If this economy has 1,200 workers in total, what is total GDP at time t, i.e., what is 
𝑌
𝑡
?

Round your answer to the nearest integer.

Hint: Take advantage of the fact that 
𝐾
𝑡
=
𝑘
𝑡
×
𝐿
𝑡
 and/or 
𝑌
𝑡
=
𝑦
𝑡
×
𝐿
𝑡
.

BlackTom AI · Accepted Answer

The task asks for the total GDP at time t, Y_t, given that there are 1,200 workers in total. The prompt also suggests using the relationships K_t = k_t × L_t and Y_t = y_t × L_t as useful forms for computing GDP from per-worker quantities.

First, note what information is actually provided and what is missing:
- L_t (the labor force or number of workers) is given as 1,200.
- K_t (the capital stock) is not provided, nor is k_t (capital per worker).
- Y_t (GDP) is what we want to find, but y_t (GDP per worker) is not provided.

To compute Y_t, you would typically need either:
- Y_t = y_t × L_t, where y_t is the GDP per worker, or
- Y_t = (k_t) × (L_t), where k_t is the capital stock per worker times L_t would not directly give Y_t unless you have the production function form (e.g., Y_t = f(K_t, L_t)). The hint mentions K_t = k_t × L_t, which allows expressing K_t in per-worker terms, but you still need a relation like Y_t = F(K_t, L_t) or a specific production function to link K_t and L_t to Y_t.

What this implies for the given numerical options:
- Without values for y_t (GDP per worker) or k_t (capital per worker) and without a specified production function, you cannot uniquely determine Y_t from L_t alone. The hint helps outline the structure, but it does not supply the actual per-worker quantities or the production function parameters needed to compute Y_t.
- Consequently, the two numerical options provided (30,760 and 27,741) cannot be validated as correct without additional data. They could be plausible under some assumed values, but those assumptions are not stated in the problem.

In summary, the problem as stated is underdetermined: 1,200 workers alone are not sufficient to compute Y_t unless you are also given either y_t (GDP per worker) or k_t (capital per worker) and the production function that links inputs to output. If those values were provided, you would multiply the per-worker quantity by L_t = 1,200 and round to the nearest integer as required. Until then, neither of the listed numerical answers can be confirmed as correct.

If you attempted to proceed with the given options, you would need to specify exactly which per-worker measure you are using (y_t or k_t) and supply its numeric value, or provide the explicit production function to translate K_t and L_t into Y_t. Without that, selecting between 30,760 and 27,741 would be arbitrary.

FA25 ECON 302 002 Midterm 2

If this economy has 1,200 workers in total, what is total GDP at time t, i.e., what is 𝑌 𝑡 ? Round your answer to the nearest integer. Hint: Take advantage of the fact that 𝐾 𝑡 = 𝑘 𝑡 × 𝐿 𝑡 and/or 𝑌 𝑡 = 𝑦 𝑡 × 𝐿 𝑡 .

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