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Hie there, please answer all parts of the question, please make sure to answer all of them in details feel free to use any diagrams

Hie there, please answer all parts of the question, please make sure to answer all of them in details feel free to use any diagrams or any equations for these questions. Please do include as much as you can. If we work for this question we will work in the long run for future questions and I am the VIP user and please do submit on time, thank you so much! If this goes well, 5 start straight away!

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In 1990, the economist Paul Krugman wrote Productivity Growth isn't everything, but in the long-run, it is almost every- thing (a) With reference to the models and data we discussed in class, to what extent do you agree with the above statement? [10 marks] (b) Consider two economies that are identical, except that one has a higher growth rate of total factor productivity. According to the Solow and Ramsey models, will there be any difference in the level of GDP per effective worker in the long run? Explain your answer. [10 marks]

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