Explain what role does depreciation play in the solow growth

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Reference no: EM1350006

What role does depreciation play in the Solow growth model? How would a decrease in the rate of depreciation (δ) change the steady state level of capital and output? Illustrate using a diagram similar to Figure 6.7. How would the model's conclusions change if all capital lasted forever and remained productive forever?

Reference no: EM1350006

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