Assume that the economy's aggregate production function is the following: (i) (ii) Y = 10 K0.3...

 

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Assume that the economy's aggregate production function is the following: (i) (ii) Y = 10 K0.3 L0-7 In a particular year, the capital stock grows by 2% and the number of workers grows by 3%. By how much does output grow? In a particular year, the capital stock grows by 2% and output grows by 3.4%. What can you say about the growth rate of labour? Assume that the economy's aggregate production function is the following: (i) (ii) Y = 10 K0.3 L0-7 In a particular year, the capital stock grows by 2% and the number of workers grows by 3%. By how much does output grow? In a particular year, the capital stock grows by 2% and output grows by 3.4%. What can you say about the growth rate of labour?

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