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Assume the following scenario for a society: A terrible disease increases the mortality rate of women of childbearing age. Using (i) the Malthusian and (ii) Solow models (initially at steady- state), determine what the income per capita would be for each model in the short-run and in the long-run. Use graphical analyses as an aid in your explanation. Make sure to conclude your explanations with the differences in income per capita, if any, that are predicted by the two models for this scenario.
This document contains various important questions and their appropriate answers in the subject field of Economics.
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