Consider the economy described in Problem 2.11. Suppose that total factor productivity increases to 15. a. Find

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Consider the economy described in Problem 2.11. Suppose that total factor productivity increases to 15.
a. Find the new levels of the steady-state capital–labor ratios and real GDP per hour worked.
b. Would a similar increase in the growth rate of labor hours have the same effect? Explain.
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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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