Suppose an economy begins in steady state

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Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in reponse to each of the following changes? Production function is Y=AK^1/3L^2/3.

a. Investment rate doubles

b. depreciation rate falls by 10%

c. Productivity level rises by 10%

d. Earthquake destrys 75% of the capital stock

e. Generous immigration policy lead the population to double.

Reference no: EM131244331

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