Question: Use your class notes to show that if the return to capital is equal to the cost of capital then we can show the following:

Use your class notes to show that if the return to capital is equal to the cost of capital then we can show the following: (1) the capital labor ratio (K/L) can be written as a function of total factor productivity (A), the cost of capital R, and and ; (2) productivity of capital (Y/K) can be written as a function of R and . Explain the intuition behind these two expressions

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