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Consider the following Cobb-Douglas production function: Y = AK/N-0 (1) where (0, 1) is the extent of capital intensity (or capital share of total
Consider the following Cobb-Douglas production function: Y = AK/N-0 (1) where (0, 1) is the extent of capital intensity (or capital share of total output) and A, is the level of technology (total factor productivity) in period t. . Using (1), derive an expression for output per capita (worker) by defining y Y/N and kt Kt/Nt, then derive an expression for the growth rate of output per worker. (15 points) M
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Authors: Frederick Crane, Roger A. Kerin, Steven W. Hartley, William Rudelius
10th Canadian edition
1259268802, 978-1259268809
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