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Given a production function Y t ? b = a r ( A ) K t 1 3 b a r ( L ) 2

Given a production function Yt?b=ar(A)Kt13bar(L)23, if ?bar(A)=2,bar(L)=4,bar(s)=0.2, and ?bar(d)=0.05 :
(a) Calculate the steady-state level of capital and output. Show your work.
(b) Does this production function exhibit constant returns to scale or does it exhibit diminishing marginal
returns? Explain, and define the difference between these two concepts.
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