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7) An invention that raises the future marginal product of capital (in a closed economy) would cause an increase in desired i
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Answer #1

7) A. right ; increase

8) B. 2.7%

Output growth rate = productivity growth rate + labor elasticity*labor growth rate + capital elasticity *capital growth rate

4= productivity growth rate + 0.7*1 + 0.3*2

Productivity growth rate = 2.7

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