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1. In what way is Paul Krugman's perspiration theory related to Al Young and Larry Lau's research on Asian economic growth?
2. Explain what would happen to economic growth in Asia if the "perspiration theory" is true.
3. Write out the aggregate production function and graph it to show how Asian countries are different from the U.S. in terms of the pattern/source of economic growth. Explain your graph.
4. Explain how marginal product of labor will be different between these two types of growth. Between China and the U.S., which country has a higher marginal product of labor (MPL)? Explain.
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