The aggregate depreciation rate may have increased because the intangible capital share in capital stock has risen.<\/p>
<\/p>
(i) Based on the Solow model, analyse how an increase in depreciation rate effects capital and output per person in the long run.<\/p>
<\/p>
(ii) How would your answers change if you were told that the use of intangible capital also enhanced aggregate productivity (i.e., the term A in Solow's model)?<\/p>", "transcribed_text": "", "related_book": { "title": "Statistics The Art And Science Of Learning From Data", "isbn": "9780321849281, 321755944, 321849280, 978-0321755940", "edition": "3rd Edition", "authors": "Alan Agresti, Christine A. Franklin", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/531.jpg", "uri": "\/textbooks\/statistics-the-art-and-science-of-learning-from-data-3rd-edition-531", "see_more_uri": "" }, "free_related_book": { "isbn": "9811554315", "uri": "\/textbooks\/advances-in-multidisciplinary-analysis-and-optimization-proceedings-of-the-2nd-national-conference-on-multidisciplinary-analysis-and-optimization-1st-edition-9789811554315", "name": "Advances In Multidisciplinary Analysis And Optimization Proceedings Of The 2nd National Conference On Multidisciplinary Analysis And Optimization", "edition": "1st Edition" }, "question_posted": "2024-06-12 21:04:34", "see_more_questions_link": "\/study-help\/questions\/business-general-management-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/production-corporation-owns-70-of-manufacturing-corporations-common-stock-and", "description": "Production Corporation owns 70% of Manufacturing Corporations common stock and Rita Howard owns the remaining 30%. 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