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3. Explain the condition for long run steady-state equilibrium and what determines the rate of steady-state growth in the Swan-Solow growth model, as based on
3. Explain the condition for long run steady-state equilibrium and what determines the rate of steady-state growth in the Swan-Solow growth model, as based on the aggregate production function, Y = AF (K, N), for a given technology. Then explain the effects of (i) an increase in the saving rate and (ii) an increase in the population growth rate, on steady-state equilibrium and consumption per person. Briefly explain how these effects differ in the A-K growth model?
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