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Consider the AK model seen in lectures. An increase in the depreciation rate leads to a permanent increase in the growth rate of income per

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Consider the AK model seen in lectures. An increase in the depreciation rate leads to a permanent increase in the growth rate of income per worker O leads to a higher growth rate of income per worker until the economy adjusts to the new steady state, but has no effect on its steady state growth ra O leads to a permanent drop in the growth rate of income per worker leads to a lower growth rate of income per worker until the economy adjusts to the new steady state, but has no effect on its steady state growth rate

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