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An increase in the labor force. Shocks to an economy, such as wars, famines, or the unifi cation of two economies, often generate large fl

An increase in the labor force. Shocks to an economy, such as wars,

famines, or the unifi cation of two economies, often generate large

fl ows 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 7 0.

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