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Economic question Consider the following diagram of an economy using the Solow model. y, sy, n $1000 $900 $800 nr $700 $600 $500 sy $400

Economic question

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Consider the following diagram of an economy using the Solow model. y, sy, n $1000 $900 $800 nr $700 $600 $500 sy $400 $300 $200 $100 9 10 11 12 13 14 15 16 17 18 19 20 What is the steady state level of per capita income? [[ Select ] What is the steady state capital-labor ratio? [ Select ] Suppose the capital-labor ratio is 6. Will per capita income rise , fall, or remain unchanged in the long- run? [[ Select ] Suppose protectionist trade policies reduce TFP. Will the steady state level of per capita income rise, fall, or remain unchanged? [ Select ]

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