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Question 3 (30 points) Suppose that z, the marginal product of efficiency units of labour, increases in the endogenous growth model. What effects does this
Question 3 (30 points) Suppose that z, the marginal product of efficiency units of labour, increases in the endogenous growth model. What effects does this have on: (Explain using the formulas given above) (a) The level of output? [5 pts] (b) The level of consumption? 5 pts] (c) The level of human capital [5 pts] (d) The growth rate of output? [5 pts] (e) The growth rate of consumption? [5 pts] (f) The growth rate of human capital? [5 pts] Good Luck
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