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Read Greg Mankiw, Romer and Wiel's article in The Quarterly Journal of Economics.
https://www.amenezes.uac.pt/macroeconomiaII/macroeconomiaII_20062007/papers/mrw1992.pdf
https://eml.berkeley.edu/~dromer/papers/MRW_QJE1992.pdf
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2. Why is human capital important when testing the Solow model against the data?
3. Explain how the authors conclude that the incomes of the world's nations are converging?
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Define Absolute convergence in the Solow Growth Model. Define Conditional Convergence in the Solow Model.
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A firm has a cost function of TC (q )=80+4q+2q2 and a marginal cost function of MC (q)=4+4q. At the given market price of $16, the firm is producing 3 units of output. What quantity of output should the firm produce in the long run?
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