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A Romer economy starts at time t=0 with an initial capital stock of ideas equal to The total population of the economy is . The
A Romer economy starts at time t=0 with an initial capital stock of ideas equal to The total population of the economy is . The number of workers employed in the research sector is The productivity of the research sector is equal to Determine the stock of ideas in period t: and in period t= Represent graphically the stock of ideas over time. Choose your own values for the exogenous variables and parameters of the Romer model (fill the gaps in the question). Explain precisely how you compute the stock of ideas at a future period.
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