Consider the following variation: There is only a single difference: weve changed the exponent on At in

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Consider the following variation:
Consider the following variation:There is only a single difference: we€™ve

There is only a single difference: we€™ve changed the exponent on At in the production of the output good so that there is now a diminishing marginal product to ideas in that sector.
(a) Provide an economic interpretation for each equation.
(b) What is the growth rate of knowledge in this economy?
(c) What is the growth rate of output per person in this economy?
(d) Solve for the level of output per person at each point in time.

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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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