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2. -20 POINTS- Consider the Solow growth model in which population evolves according to: N' = (1 + n)N where N is the population (labor

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2. -20 POINTS- Consider the Solow growth model in which population evolves according to: N' = (1 + n)N where N is the population (labor force) in the current period, N' is the population (labor force) in the future period, and n is the population growth rate. There are public health expenditures that takes the form of government spending, G = gN, where G is the current period government spending on health care, g is the per-capita health spending in the current period. The production technology is given by Y = zKo Ni-a where Y is the output of the consumption good, z is the total factor productivity, K is the current period capital stock, aN is the labour input, and 0

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