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In order to write the production function in the form below, according to the textbook, what two key assumptions must we make

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Answer:

1]

Correct option: D] Employment is constant and there is no technological progress in the economy.

In production function, it is assumed that Employment is constant and there is no technological progress in the economy. This leads to a stable production function.

2]

We assume that public saving, T - G, is zero and that private saving, S, is proportional to income.

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