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Consider the Cobb-Douglas production function with parameter a=1/3 What fraction of income do capital and labor receive? Suppose that the immigration increase labor force by
Consider the Cobb-Douglas production function with parameter a=1/3
- What fraction of income do capital and labor receive?
- Suppose that the immigration increase labor force by 15%. What happen to total output ( in percent)? The rental price of capital? The real wage?
- Suppose technology parameter A increase by 5%. What happen to total output ( in percent)? The rental price of capital? The real wage?
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