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Technology slowdown. Assume that the growth rate of labour-augmenting technology decreases from g0 to g1 < g0. Show its impact on the dynamics of the
Technology slowdown. Assume that the growth rate of labour-augmenting technology decreases from g0 to g1 < g0. Show its impact on the dynamics of the economy assuming that the economy starts fromthe initial steady-state. What is the dynamics of the growth rate of GDP per capita and the level of GDP per capita during the transition? Will the economy end up at a higher or a lower income level?
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