Growth rates in the solow model

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Growth rates in the Solow model (II): Suppose an economy begins in steady state and is characterized by the following parameter values: s 0.2, d 0.1, A 1, L 100. Apply your answer to question 8 to calculate the growth of per capita GDP in the period immediately after each of the changes listed below. (Hint: Since the economy begins in steady state, its growth rate is initially zero and Kt K*.)

(a) The investment rate doubles.

(b) The productivity level rises by 10%.

(d) A more generous immigration policy leads the population to double.

Reference no: EM131004744

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