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work with the Solow Growth Model, assuming an economy at the steady state. What will happen to the steady state values if productivity increases, i.e.
work with the Solow Growth Model, assuming an economy at the steady state. What will happen to the steady state values if productivity increases, i.e. the production function shifts upward?
Hint:
You need to draw 2 new curves: New y and New sy.
Because, if y shifts, sy has to shift as well.
Please write an answer (producing just 1 figure)
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