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Business, 30.03.2020 19:33 pcartei

Suppose output, investment, and depreciation are given by the following formulas: Output: Y = √ K Investment: I = 0.3 √ K Depreciation: D = 0.02 K What is the new steady-state levels of capital stock and the new steady-state level of output if we increase the depreciation rate from 0.02 to 0.03?

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Suppose output, investment, and depreciation are given by the following formulas: Output: Y = √ K In...

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