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Suppose the economy is at the steady state. If the marginal product of capital net depreciation equals 5 percent (MPK - = 5%), the rate
Suppose the economy is at the steady state. If the marginal product of capital net depreciation equals 5 percent (MPK - = 5%), the rate of growth of population equals 3 percent (n = 3%), and the rate of labor-augmenting technical progress equals 3 percent (g=3%),
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