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Macroland is at the Steady State. Due to a poorly maintained infrastructure, the depreciation rate increases in Macroland. At the same time, Macroland requests and

Macroland is at the Steady State. Due to a poorly maintained infrastructure, the depreciation rate increases in Macroland. At the same time, Macroland requests and received capital through a foreign aid program.

Using the illustration of the Solow Growth Model, explain what happens to the Steady State values in Macroland.

Fully label your figure and provide short written explanations.

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