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Start by drawing a given country's steady state, using only the investment and the depreciation plus capital dilution curves. On the same graph do the
Start by drawing a given country's steady state, using only the investment and the depreciation plus capital dilution curves. On the same graph do the following: a) Consider the effects of an immigration wave of individuals that exhibit both higher saving and fertility rates than the current population. Draw the new curves. [3 marks] b) Identify the new steady state capital-labour ratio level. Is it necessarily higher or lower than the previous steady state
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