How the economy evolves over time in the solow model

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Consider a Solow model where the production function no longer exhibits diminishing returns to capital accumulation. Assume that the production function is now Yt = AKt . The rest of the model is unchanged.

a Draw the Solow diagram in this case.

b Suppose the economy begins with capital K0, and show how the economy evolves over time in the Solow model.

c What happens to the growth rate of per capita GDP over time?

Reference no: EM132790267

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