Suppose an economy begins in steady state by what


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.

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Business Economics: Suppose an economy begins in steady state by what
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