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Solow-swan model problems (3) Use the Solow-Swan growth model to answer the following questions. Show your work! Suppose that a government purchases goods in the

Solow-swan model problems

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(3) Use the Solow-Swan growth model to answer the following questions. Show your work! Suppose that a government purchases goods in the amount of 19 per worker every year; with L: workers in year t, total government purchases are QLt. The government has a balanced budget so that its tax revenue in year t, Tt, equals total government purchases. National saving is given by St = 3(lft _ ) LUKt, where Y is total output and s is the saving rate (0

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