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magine that you are in the position of a planning authority in an economy that starts in the steady state. The planning authority contemplates a

magine that you are in the position of a planning authority in an economy that starts in the steady state. The planning authority contemplates a one-time change in the saving rate from the current level s to a new level s . Once s is chosen, the economy has to stay with this s forever. (a) Imagine that the goal of the planning authority is to maximize output in the long run. What s should the authority choose

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