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According to the Solow model, how would each of the following affect consumption per worker in the long run (i.e. in the steady state)? Draw a figure and explain.
a. The destruction of a portion of the nation's capital stock in a war.
b. A permanent increase in the rate of immigration (which raises the overall population growth rate).
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Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0
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