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Q. Consider an economy where there are N consumers, each of them having one unit of available time. There is a representative rm that has a Cobb-Douglas production technology of the form Y = zF (K; N). There is no government.
(a) Suppose Y = zK^1/3N^2/3 Derive an expression that relates K and K'. What is its economic interpretation?
(b) Using your answer from part (a), derive an expression that relates k and k
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