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An increase in population or population growth rate has the exact opposite effect in the Solow and Romer models. In this question, we'll focus on the Romer model only. Suppose an economy at time (t0, i.e., time of impact) experienced an influx of 10,000 workers. Using the Romer model, carefully, explain how this event would impact this economy's level of output per capita and its growth rate, both at the time of impact and subsequently.
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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