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Suppose that at t = 0 the economy is at its steady state. At this point, there is a once-and- for-all increase in productivity. The
Suppose that at t = 0 the economy is at its steady state. At this point, there is a once-and- for-all increase in productivity. The new value of y is y > y. a. Show how the new steady-state value of , denoted , compares with the previous value. (2 points)
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