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Consider an economy that has the following production function: Y = zF(K, N) = K1/3N2/3 where Y,z,K and N denote output, total factor productivity, capital
Consider an economy that has the following production function: Y = zF(K, N) = K1/3N2/3 where Y,z,K and N denote output, total factor productivity, capital stock and labour employment respectively (2 = 1 for simplicity). Assume the depreciation rate d = 0.18, saving rate 5' = 0.2, and population growth rate R = 0.02
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