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Suppose that the equation of the MagicLand's real GDP, Y is given by: Y = AK1/3 N2/3 where A, K, N measure, respectively, total factor

Suppose that the equation of the MagicLand's real GDP, Y is given by: Y = AK1/3 N2/3 where A, K, N measure, respectively, total factor productivity, the amount of capital, the number of hours of work. a) Suppose that the total factor productivity fell by 6% and capital increased by 3%. Holding N constant, what was the resulting percentage change in GDP? Provide the growth accounting equation, no need to derive it. b) Illustrate the effects of the fall in the total factor productivity in a graph, where labor, N, is on the horizontal axis and output, Y, is on the vertical axis. Will the marginal product of labor increase or decrease? c) Illustrate and describe the fall in the total factor productivity on the MagicLand's labor market graph, assuming that aggregate labor supply is an increasing function of the real wage

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