Question
Use the Solow Model. Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in response
Use the Solow Model. Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in response to each of the following changes? (a) The investment rate falls by 35% (b) the depreciation rate rises by 20% (c) The productivity level falls by 15%
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Labor Economics
Authors: George J. Borjas
6th edition
73523208, 2900073523209 , 978-0073523200
