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The growth rate of output, consumption, and human capital will also increase. The increase in the marginal product of efficiency units of labor translates into
The growth rate of output, consumption, and human capital will also increase. The increase in the marginal product of efficiency units of labor translates into higher productivity and efficiency, which leads to a higher growth rate of output. With a higher growth rate of output, there will be more resources available for consumption, leading to a higher growth rate of consumption. The increase in the marginal product of efficiency units of labor allows for a higher growth rate of human capital, as each unit of labor can generate more human capital
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