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Suppose that this year the working population is 20 million workers and the number of workers grows by 8% per year. If the current level of capital in the economy is equal to 140 million, the production function is constant-returns-to-scale, and there is no depreciation of capital, how much capital do we need next year in order to increase labor productivity, all else equal?
a) 148.0 million
b) 160.0 million
c) 151.2 million
d) Not enough information.
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