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Suppose that the population growth rate of a developing economy drops. Using carefully labeled diagrams explain what the effect is, in the neoclassical (Solow) growth
Suppose that the population growth rate of a developing economy drops. Using carefully labeled diagrams explain what the effect is, in the neoclassical (Solow) growth model in both, (i) the short run, and (ii) the long run. What is the growth rate of aggregate capital in the original and new steady states as well as in the transition from one steady state to the other
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