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How would each of the following changes affect the steady-state values of the capital-labor ratio, output per worker, and consumption per worker in the SOLOW
- How would each of the following changes affect the steady-state values of the capital-labor ratio, output per worker, and consumption per worker in the SOLOW growth model?
- A change in the composition of the capital stock raises the depreciation rate.
- A decrease in the population growth rate.
- Government tax policies change to encourage a higher saving rate.
- A supply shock reduces productivity sharply.
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