Determine by how much does output increase

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Reference no: EM13203452

Consider again the Solow growth model and the following production function:

a). If A = 2, L = 20,000, and K = 400, what is output?
b). Suppose the labor force grows by 5% so that it is now 21,000. By how much does output increase?
c). Starting again with the conditions in part a, what is capital increases by 5%, so that it is now 420. By how much does output increase?

Reference no: EM13203452

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