Events affect output-capital-consumption per unit of labor

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Reference no: EM13839082

Explain how the following events affect output, capital and consumption per unit of labor in the long run and along the transition according to Solow's Model:

a) The destruction of 30% of the capital stock because of a natural disaster

b) A permanent increase in the immigration rate.

c) A permanent increase in the labor market participation rate.

d) A permanent increase in the depreciation rate.

e) A temporal increase in the savings rate.

f) A permanent increase in the savings rate.

Reference no: EM13839082

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