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A country has following circumstances, Variables Growth Real interest rate 5% Population growth rate 2% While P= P k = 1, Profit function is given

A country has following circumstances,

Variables Growth

Real interest rate 5%

Population growth rate 2%

While P= P_k= 1,

Profit function is given by, = Y rK wN K

-Assuming Cobb-Douglas framework and g= 0, is Pareto improvement expected? Why or why not?

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