Reduction in steady-state output per worker

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According to the economic growth theory that we have studied, how would each of the following events affect per capita consumption in the long-run (i.e., after return to the steady state).. Illustrate graphically and explain. In all of the parts, we can assume that the rate of saving is less than the golden rule level of saving, so that a reduction in steady-state output per worker leads to a reduction in steady-state consumption per worker.

Reference no: EM13926694

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