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An economy has a Cobb-Douglas production function: Y = K(LE)1-a The economy has a capital share of 0.35, a saving rate of 40 percent, a
An economy has a Cobb-Douglas production function: Y = K"(LE)1-a The economy has a capital share of 0.35, a saving rate of 40 percent, a depreciation rate of 4.25 percent, a rate of population growth of 3.00 percent, and a rate of labor-augmenting technological change of 2.5 percent. It is in steady state. boa. At what rates do total output and output per worker grow? Macmillan Learning Total output growth rate: % Output per worker growth rate: % Output per effective worker declines in the steady state. O is constant in the steady state and does not change. O increases in the steady state
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