Explain how an increase in gross private investment

Reference no: EM133706477

Question: Suppose that IRA succeeds. Then, holding employment and total factor productivity constant, explain how an increase in gross private investment in the present (in period t) affects i. the capital stock in the future (at the beginning of period t 1), ii. the growth rate in capital (between t and t 1), iii. real GDP in the future (over t 1), and iv. the growth rate in real GDP (between t and t 1).

Reference no: EM133706477

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