Question: A societal utility function for an entire nation is found to be In U = 3.2 0.52lnG + 0.47 InB, where G and B

A societal utility function for an entire nation is found to be In U = 3.2
− 0.52lnG + 0.47 InB, where G and B are guns and butter. Interpret the
coefficients. What happens to utility for the nation if 1% more guns are
produced? 1% more butter?

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