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Consider an economy described by the production functionY= R with 30% of output invested in new capital and 6% of the capital stock depreciating each

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Consider an economy described by the production functionY= R with 30% of output invested in new capital and 6% of the capital stock depreciating each year. If the current capital stock is 20, then the economy's capital stock would: grow, but the output next period would decrease. shrink, and the output next period would decrease. shrink, but the output next period would increase. grow, and the output next period would increase

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