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Solow growth model. In this question, you Will explore how changes in the saving rate and the rate of technological progress affect an economy's growth.

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Solow growth model. In this question, you Will explore how changes in the saving rate and the rate of technological progress affect an economy's growth. In addition, you Will examine how the golden rule saving rate depends on the production function. Consider the Solow (neoclassical) growth model With aggregate production function Y = Ka(AN)1'a. Each period lasts a year. 1/3 3.0% co o Q 4% 9N 1.0% 16% Table 1: Benchmark Parameter Values - Solow model

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