Start by drawing a given countrys steady state, using only the investment and the depreciation and capital
Question:
Start by drawing a given country’s steady state, using only the investment and the depreciation and capital dilution curves. On the same graph, do the following:
a) Consider the effects of an immigration wave of individuals who exhibit both higher saving and fertility rates than the current population. Draw the new curves.
b) Identify the new steady-state capital-labor ratio level. Is it necessarily higher or lower than the previous steady state?
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To address this question lets break it down step by step a Effects of Immigration Wave on Investment and DepreciationCapital Dilution Curves Investmen...View the full answer
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