Question: According to the neoclassical growth model, how would each of the following affect consumption per worker in the long run (that is, in the steady
According to the neoclassical growth model, how would each of the following affect consumption per worker in the long run (that is, in the steady state)? Explain.
a. The destruction of a portion of the country's capital stock in a war.
b. A permanent increase in the rate of immigration (which raises the overall population growth rate).
c. A permanent increase in energy prices.
d. A temporary rise in the saving rate.
e. A permanent increase in the fraction of the population in the labour force (the population growth rate is unchanged).
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