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Solow model with human capital

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a) Unemployment is strongly countercyclical. Is this stylized fact of the business cycle fact consistent with the Business Cycle theory?

b) According to Kaldor stylized facts of growth, in the long run K/L and Y/L grow at a sustained rate andK/Y is stable. Show that these facts are consistent with the Solow model with human capital.

Reference no: EM131191764

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