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The Solow model of economic growth relates GDP to the factors of production and level of technology in an economy. The more factors of production,

The Solow model of economic growth relates GDP to the factors of production and level of technology in an economy. The more factors of production, or the higher the level of technology, the more output the economy can produce. However, the factors of production exhibit diminishing marginal product. Focusing only on capital resources, the following table provides the amount of output that a country can produce with different levels of capital

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Units of Output Units of Capital 700 30 1100 60 1300 90 1400 140 Use the information provided in the table to plot the aggregate production function on the graph below, which will exhibit positive but diminishing marginal returns. Use the curved-line tool at the first point, midpoint, and end point to draw the function. To refer to the graphing tutorial for this question type, please click here. Y (real GDP) 1800 1500 1400 1300 1200 1100 1000 900 800 700 800 500 400 300 200 100 K (capital)

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