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Households in Australia have increased their savings since the COVID-19 pandemic to hedge against rising economic uncertainty. Assume that saving becomes the new norm and

Households in Australia have increased their savings since the COVID-19 pandemic to hedge against rising economic uncertainty. Assume that saving becomes the new norm and households permanently increase their saving rate. Use the growth model to analyse the impact of this increase in the saving rate on the rate of economic growth, and the level of output per worker.(3 points)

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