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Consider an economy with a production function given by: economy prodn fn does the production exhibit increasing, decreasing, or constant returns to scale? justify your answer by showing algebraically what happens to output if capital stock (k) and effective labor (an) increase simultaneously by 100% (i. e., double). the capital accumulation process in this economy is described by: capital accumulation 2 assume that s, d, g solve for the steady-state values of per-effective labor capital stock (k/an) and output (y/an). c. in the steady-state what will be: (i) the growth rate of output per effective labor (y/an)? (ii) the growth rate of output per worker (y/n)? (iii) the growth rate of output (y)?
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Consider an economy with a production function given by: economy prodn fn does the production exhib...
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