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(b) Suppose the depreciation rate d = 0.1 and the investment rate 3 =0.2 in all countries. What are the capital accumulation equation and the

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(b) Suppose the depreciation rate d = 0.1 and the investment rate 3 =0.2 in all countries. What are the capital accumulation equation and the resource allocation equation for the economies? (Hint: again, the equations will be the same for each economy given the same parameters.) (c) Assuming that each country had a relatively stable growth rate prior the floods, what would you predict output was in each country prior to the floods given the parameter values and the Solow model? (Hint: What does a stable growth rate imply about whether the economy is on a transition path or in steady state?)

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