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Increase in the depreciation rate

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Reference no: EM131165214

Use the Solow model, the Solow-model diagram and the capital accumulation equation to explain what happens to the following if there is an increase in the depreciation rate:

(a) The capital-to-labor ratio.

(b) Output per worker

(c) Growth during the transition phase

(d) Long-term economic growth

Reference no: EM131165214

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