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Explain Solow's steady-state and show that at any given point an economy will eventually converge to a steady-state. What is the main difference between the

  1. Explain Solow's steady-state and show that at any given point an economy will eventually converge to a steady-state.
  2. What is the main difference between the Romer Model (endogenous growth) and Solow Model?
  3. Now assume that Emperor Awesome suddenly cares about the standard of life of his citizens. Which of the two policies in Q10 increase the Standard of life? Prove it. Show your work.

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