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Business, 14.04.2020 22:01 hopkinbr

An economy initially has 200 units of physical capital per worker. Each year, it increases the amount of physical capital by 10%. According to the aggregate production function for this economy, each 1% increase in physical capital per worker, holding human capital and technology constant, increases output per worker by 0.25%. If there is no inflation and output per worker is initially $1,000, what does the estimated output per worker equal after one year

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