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Under the assumptions of Solow's growth model, assume the economy is in a steady state. How will the steady-state levels of output and consumption per

Under the assumptions of Solow's growth model, assume the economy is in a steady state. How will the steady-state levels of output and consumption per capita change in response to the following event: the switch to bad labor-market institutions, leading only a fraction of the people to find work in any given period (thus, there is permanent unemployment). Again, the change occurs instantly.

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