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Consider the growth model with technological progress studied in the course and assume that that the economy is initially in stationary equilibrium: (a) If the
Consider the growth model with technological progress studied in the course and assume that that the economy is initially in stationary equilibrium: (a) If the savings rate increases, how will the growth rate of output per worker change during the transition period to the new stationary equilibrium? Explain briefly b) What is the impact of the increase in the savings rate on the growth rate of output per worker at the new stationary per worker in the new stationary equilibrium?
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