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2. Consider a hypothetical economy with the following properties: Production Function: Y = K'EDLEU'. where E 1': 1 Savings rate: s = 10% Depreciation rate
2. Consider a hypothetical economy with the following properties: Production Function: Y = K'EDLEU'\". where E 1': 1 Savings rate: s = 10% Depreciation rate = 5% Population growth: n = 3% Efficiency,F of Labor growling = 2% Use subscript E for per effective worker variables (e.g., kg and 1;; for capital and income per effective worker etc.) a. What does Efciency' of Labor E mean? How is it different to TFP (A) In. Derive the output per effective worker production function
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