Question: 3. Is there a scale effect? Assume alternatively that it is government expenditure per worker, G ,/L,, that is productive, so that A,=aG, above is

3. Is there a scale effect? Assume alternatively that it is government expenditure per worker, G ,/L,, that is productive, so that A,=aG, above is replaced by A,= a{G,/L,). Analyse the model and find the growth rate of GOP per worker. Comment with respect to the scale effect and the aggregate productivity of labour.

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