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Consider the Solow growth model, where population grows at the constant rate n, N=(1+n)N, s = saving rate, the production function is given by Y=zF(K,N),
Consider the Solow growth model, where population grows at the constant rate n, N=(1+n)N, s = saving rate, the production function is given by Y=zF(K,N), the evolution of capital is given by K=(1-d)K+I where d = depreciation rate and I = investment. The income expenditure identity is given by Y = C+I and S=I. Please upload pictures of your graphical analysis.
Consider an increase in the population growth rate, n. What is the equilibrium impact on capital per worker and output per worker? Show this graphically and using algebraic expressions.
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