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{"ops":[{"insert":"Choose the best answer to each\nquestion.\nConsider a Solow growth model with the\nfollowing production function:\nY-FiX.L) - K0.3 (AL) 0.7\n(1) If A = 2, L= 20.000, and K = 400, what is output?\n(2) Does this production function have constant\nreturns to scale? Explain.\n(3) Suppose the labor force grows by 5% so that it is\nnow 21.000. By how\nmuch does output increase?\n(4) Starting again with the conditions in part (1),\nwhat if capital increases by\n5%, so that it is now 420. By how much does\noutput increase?\n\nFor each pair listed below, i) explain the meaning\nand significance of both terms, and il) briefly\nexplain the relationship between the two terms.\n(1) the center; the periphery\n(2) steady state, Golden-rule steady state\n(3) convergence; conditional convergence\n(4) TP; growth accounting equation\n\n Discuss some limitations of the following three\nmodels\n(1) the Lewis model\n(2) Dependency theory\n(3) Slow model\n"}]}
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