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Introduce labor-augmenting technological progress at the rate g into the neoclassical growth model with physical and human capital discussed in Section 10.4.
(a) Define a competitive equilibrium.
(b) Determine transformed variables that remain constant in a steady-state allocation.
(c) Characterize the steady-state equilibrium and the transitional dynamics.
(d) Why does faster technological progress lead to more rapid accumulation of human capital?
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