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What fraction of the total variation in the quantity demanded of good Y remains unexplained? What can the student do to increase the explanatory power of his demand equation? What other variables might he add to his demand equation?
Macroeconomics, Economics
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Question - In this question, I will guide you through a simple AK model. The so-called AK model is a special case of the Solow Model. The production function is simply Y = AK so 1/3 for capital in the last question becom ...
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