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1. Ceten's paribus, what would be the effect of the following changes in the growth rate of the country's real GDP? [Hint: Use growth accounting

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1. Ceten's paribus, what would be the effect of the following changes in the growth rate of the country's real GDP? [Hint: Use growth accounting equation (*1)]. a. Reduction of the average workweek from 40 hours to 30 hours per week. b. A decrease in the capital gains tax rate, i.e., the tax paid on prots from assets like stocks and bonds. . [Hint: This will encourage households to save, since households purchase stocks and bonds with savings] c. Development of a new, higher yielding variety of grain

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