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Use the Solow Model to analyze the following policy scenarios. Some data: the national savings rate(s) is 10 percent; capital's share of income is one-third;
Use the Solow Model to analyze the following policy scenarios.
Some data: the national savings rate(s) is 10 percent; capital's share of income is one-third; and the depreciation rate of the capital stock (K) is 8 percent. Assume its labor force equals 1 and that total factor productivity (TFP) equals 10.
Compute output per worker, assuming that it is in the steady state.
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