to scale We have a production function which has a constant returns Y = F(A, K,...

 

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to scale We have a production function which has a constant returns Y = F(A, K, L) = AK L and capital acumulation function Ki+1 = KSY SK, - (i) Define equations above -L (ii) Find out steady state level of capital per labor and explain this steady state level of capital per labor. to scale We have a production function which has a constant returns Y = F(A, K, L) = AK L and capital acumulation function Ki+1 = KSY SK, - (i) Define equations above -L (ii) Find out steady state level of capital per labor and explain this steady state level of capital per labor.

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SOLUTION i Production function Y FA K L AKO L where Y is the total output of the economy A is the te... View the full answer