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Answer :
Answer:
$1,025
Explanation:
An economy initially has 200 units of physical capital per worker.
Each year it increases the amount of physical capital by 10%.
Each 1% increase in physical capital per worker, holding human capital and technology constant, increases output per worker by 0.25%.
Therefore 10% increase, increases output per worker by 2.5%.
If output is initially $1,000, then the estimated output per worker after one year equal $1000 x 1.025 = $1,025
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