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Consider a Solow-Swan model of output growth where the output per-effective worker for a given year is represented by the following equation, = 6^1/2 a.)
Consider a Solow-Swan model of output growth where the output per-effective worker for a given year is represented by the following equation, = 6^1/2 a.) Suppose that the effective labour force grows at 1% per year, depreciation rate of capital is 14% and households consume 90% of their yearly income and save the rest. Assuming that total factor productivity is constant, compute the steady-state values of capital per worker, output per effective worker, consumption per effective worker, and investment per effective worker
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