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Refer to the findings of A. Young (1995) in The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience, to expand
Refer to the findings of A. Young (1995) in "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," to expand the standard neoclassical production function, Y=AF(K,N) by incorporating factors that contributed to the economic growth of each country considered as "Asian Tigers". Explain if the findings in the paper are consistent with the prediction of the Solow growth model.The short-run aggregate supply curve of country A is completely flat, however, the long-run aggregate supply curve is completely vertical. In period 1, the GDP produced by the country is less than its potential GDP. a) Use the aggregate supply equation, and a graph of the aggregate supply-aggregate demand model to explain how the price level and output in the economy will evolve from period 1 to the long run. Will the price level continue to change in the long run? b) Show graphically how the output and price level of country A will transition from the short run to the long run
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