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3) Botswana. In his book Globalization and its Discontents, pg. 38, Joseph Stiglitz criticized the International Monetary Fund's policy toward Botswana in 1981. He uses

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3) Botswana. In his book Globalization and its Discontents, pg. 38, Joseph Stiglitz criticized the International Monetary Fund's policy toward Botswana in 1981. He uses this as one example of a larger critique of the "Washington Consensus" policy toward developing nations. This problem uses approximately accurate data to analyze the situation. First, let's normalize Botswana's working population to 100, and let labor supply be Ls = 100. Let Botswana have an aggregate production function Q = 117.511/2 and assume the firms represented by this function are owned by the workers (i.e. profits accrue to households). Set the price of Q equal to $1, and note that with the given production function, the value of final output (GDP) at full employment p.@(Ls) is $1,175. Private

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