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economic question Consider a simple Cobb-Douglas economy with competition. constant returns to scale. and capital and labor as its only factor inputs. An increase in

economic question

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Consider a simple Cobb-Douglas economy with competition. constant returns to scale. and capital and labor as its only factor inputs. An increase in the output elasticity of capital makes income per capita sensitive to a change in the capital-labor ratio. K\". less C'- no more and no less I'\": more

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