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Graph a Solow Model with all of its essential components. (1) Label the break-even investment (or depreciation) line, investment curve, and production curve. (2) Then,

Graph a Solow Model with all of its essential components. (1) Label the break-even investment (or depreciation) line, investment curve, and production curve. (2) Then, show what would happen as a result of a decrease in the savings rate. (3) Finally, explain where the new steady state level of capital and output is (higher or lower) and why.

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