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Illustrate the long-run dynamics of aid initiative

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Reference no: EM133066588

Amume that an economy is in its steady statenooording to the Solow model of economic growth. Consider now an aid agency that increases capital in form of foreign aid for one period. Will this aid initiative increase long-run growth according to the $0101? growth model? Explain. In the space below make a. graph that illustrates the long-run dynamics of this aid initiative.

Reference no: EM133066588

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