Level III Economics Concepts

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The Cobb-Douglas production function is: \[Y\ =\ AK^{\alpha}L^{\beta}\] where: \(Y\): total real economic output (GDP) \(A\): total factor productivity (TFP), a measure of the level of technology \(K\): capital \(L\): labor \(\alpha\): the share of total output attributable to capital, known as the output elasticity of capital; note that \(0\ <\ \alpha\ <\ 1\) \(\beta\): […]

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