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Consider the Solow's growth model. Derive an equation that determines the steady state level of capital per capita. Analyze the long-run effects on the steady

Consider the Solow's growth model. Derive an equation that determines the steady state

level of capital per capita. Analyze the long-run effects on the steady state of the following

changes to the environment:

(a) A fraction of the country capital stock gets destroyed. For this last case also explain in

detail what happens in the short run (i.e. the transition to the new steady state).

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