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Suppose the incentives provided to investment, such as tax credits, in the budget presented on Feb 1 actually work and the investment (savings) rate does
Suppose the incentives provided to investment, such as tax credits, in the budget presented on Feb 1 actually work and the investment (savings) rate does go up permanently from s to s. Graphically and analytically examine the effect of this change on per capita output in the Solow growth model with technological progress.
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