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consider the image: (15%) Problem 7 - Solow Model: Experiment (D). Consider a standard Solow model. The production function is given by Y, = AK,N)-,

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(15%) Problem 7 - Solow Model: Experiment (D). Consider a standard Solow model. The production function is given by Y, = AK,N)-", with saving rate s, depreciation rate o, population growth at rate n and technology A. Suppose that the U.S. Congress decides to levy a consumption tax. That is, the new budget constraint is (1 + T)C + 1 = Y, where T is the tax rate. (a) (10 points) Assume that the household invests the same amount as before. Cal- culate the steady-state value for per-capital capital, per-capita output, per-capita

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