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An increase in the labor force. Shocks to an economy, such as wars, famines, or the unification of two economies, often generate large flows of
An increase in the labor force. Shocks to an economy, such as wars,
famines, or the unification of two economies, often generate large
flows of workers across borders. What are the short-run and longrun
effects on an economy of a one-time permanent increase in the
stock of labor? Examine this question in the context of the Solow
model with g = 0 and n > 0.
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