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Consider an economy at its long run steady-state output level and capital-labor ratio.Graph this on the capital and saving, investment, depreciation graph.Show changes in the
Consider an economy at its long run steady-state output level and capital-labor ratio.Graph this on the capital and saving, investment, depreciation graph.Show changes in the steady state for each of the following:
Draw a separate graph showing each change independently, and state what happens to output and consumption; (Increase, Decrease, No change, cannot say)
a.Increase in population growth rate: Output ____________ Consumption ___________
b.Increase in saving rate: Output ___________Consumption _____________
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