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Answer to Question #85198 in Macroeconomics for Annie
Question #85198
Start from the Cobb-Douglas production function where the parameters á and â are constant, 0 < á < 1 and á + â = 1.2. Derive the expression for the growth rate of output per worker in balanced growth equilibrium. Show all your steps. In this case, will the growth rate of output per worker be equal to, less than, or greater than the growth rate of efficiency in balanced growth equilibrium?
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