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6. Suppose the information below characterizes an economy: a. Construct the aggregate production function for this economy. b. What kind of returns does this economy experience? How do you know? c. Assuming that total available employment is 7 million, draw the economy’s long-run aggregate supply curve. Suppose that improvement in technology means that real GDP at each level of employment rises by $200 billion. a. Construct the new aggregate production function for this economy. b. Construct the new long-run aggregate supply curve for the economy.
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