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March 31, 2015

Homework Help: economics

Posted by Erica on Monday, February 4, 2013 at 4:44pm.

If capitalís share of income is 25% and laborís share of income is 75%, the stocks of both capital and labor increase by 50% (K/K = N/N = 0.5), and there is no technology growth, at what rate will potential output grow? Will the capital-labor ratio increase at all?

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