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Suppose the rate of technological progress slows down. Using the Solow growth model, explain what will happen to the level and growth rate in (i)
Suppose the rate of technological progress slows down. Using the Solow growth model, explain what will happen to the level and growth rate in (i) output per effective worker, (ii) output per worker and (iii) output. In doing so, describe the situation regarding the steady states as well as the transition period as the economy adjusts between the steady states.
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