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The Solow model
What are the effects (both short-run and medium-run) of the following changes in the Solow model of economic growth:
a) a fall in the saving rate, s
b) a rise in growth of the labor force, gN
c) a fall in the growth rate of technical change, gA
For each case use the model and graph from Chapter 12. Summarize the consequences for the growth of (i) output and capital, (ii) output per worker and capital per worker, and (iii) output per effective worker, capital per effective worker.
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