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4. Solving the production model: Suppose the production function at the core of our model is given by Y = 141(3/'4L1/4 (that is, assume the
4. Solving the production model: Suppose the production function at the core of our model is given by Y = 141(3/'4L1/4 (that is, assume the exponents on capital and labor are 3/4 and 1/4 rather than if?) and 2f3). (a) Create a new version of Table 4.1 for the new version of the model. What are the ve equations and ve unknowns? (Hint: The hiring rules for capital and labor will change in the obvious way.) (b) Now solve these equations to get the solution to the model. Put your solution in the same form as Table 4.2. (c) What is the solution for the equilibrium level of output per person
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