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Suppose the economy starts out in steady state until, suddenly, the depreciation rate declines from to < forever. (a) What happens to capital, output, and

Suppose the economy starts out in steady state until, suddenly, the depreciation rate declines from to < forever. (a) What happens to capital, output, and consumption in the new steady state? Explain your reasoning using a phase diagram. (b) Illustrate the transition dynamics of capital to the new steady state in a graph and explain

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