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7. An economy has a per-capita production function y = Akahl-a, where A and a are fixed parameters, y is per- worker output, k is
7. An economy has a per-capita production function y = Akahl-a, where A and a are fixed parameters, y is per- worker output, k is the capital-labor ratio, and h is human capital per worker, a measure of the skills and training of the average worker. The production func- tion implies that, for a given capital-labor ratio, increases in average human capital raise output per worker
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