Analyze the comparative dynamics in response to the


(a) Analyze the comparative dynamics of the basic model in response to an unanticipated increase to g' > g in the rate of labor-augmenting technological progress. Does consumption increase or decrease with this change?

(b) Analyze the comparative dynamics in response to the announcement at time T that at some future date T' > T the tax rate will decline to τ'

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Econometrics: Analyze the comparative dynamics in response to the
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