Consider the solow model with population growth

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Consider the Solow model with population growth. Assume that population can grow attwo different rates n1 and n2, where n1 > n2. The population growth rate depends on thelevel of output per capita (and therefore the level of capital per capita). Specifically,population grows at rate n1 when k k*. Draw adiagram for this model. Assume that (n1 + δ)k* > γf(k*) and that (n2 + δ)k* γf(k*).Explain what the diagram says about the steady state of the model? (k* is not the steadystate, it is the level of capital that population growth rate will be different before and afterthat level).

Reference no: EM131405349

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