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2. In a. country, output is produced with labor and physical capital. The production function in per-worker terms is y = Akl. The depreciation rate

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2. In a. country, output is produced with labor and physical capital. The production function in per-worker terms is y = Akl. The depreciation rate is 2%. A, the overall productivity parameter equals 1. The investment rate (7) is determined as follows: 7:0.20ify510 7=0.40ify> 10. Draw a diagram showing the steady state(s) of this model. Calculate the values of any steady state levels of k and y. Also, indicate on the diagram and describe briey in words how the levels of y and k behave outside of the steady state. Comment briey on the stability of the steady state(s)

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