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4. [It] points} Consider a onetime change in government policy that immediately and permanently increases the level of the labor force in an economy from
4. [It] points} Consider a onetime change in government policy that immediately and permanently increases the level of the labor force in an economy from L9 to L1 > L0 at some point in time to. Assuming the economy with technological progress at a rate 9 starts in its initial steady state, use the Solow model to explain what happens to the economy over time and in the long run. In particular, draw two diagrams: 1) for real wages with time on the horizontal axis using a. ratio scale; and 2) the Solow diagram that outlines the changes. Assume that, the growth rate of population stays constant over time at a rate R
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