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Suppose the efficiency of the economy improves in the sense that more output is generated with the same capital stock. What will this do to

  1. Suppose the efficiency of the economy improves in the sense that more output is generated with the same capital stock. What will this do to the growth rate in the Harrod - Domar growth model?
  2. What are the variables that the Solow and the Harrod - Domar models share in common?

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