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15-03-2024
Business

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Consider modifying the advanced Solow model by making technological progress capital-augmenting rather than labor-augmenting. Let the production function be given by Y=(AK){α )L{1-α ). What is the modified production function in the advanced Solow model when technological progress is capital-augmenting?
a. Y=(AK){α )L{1-α )
b. Y=(KAL){α )
c. Y=AKL
d. Y=ALK

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