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5. Using a Cobb-Douglas production function, Y=AK L'-, develop the formula for the steady-state level of income in the Solow model without technical progress. What

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5. Using a Cobb-Douglas production function, Y=AK L'-, develop the formula for the steady-state level of income in the Solow model without technical progress. What happens to the steady-state level of income when the savings rate increases exogenously? (16 marks)

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