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Suppose we're modeling an economy using the Solow model. It begins in steady state. By what proportion does y? (the post-change steady-state per capita GDP) change in response to the following changes? Show your work/reasoning (a solution for y? will be a useful starting point).
(a) The investment rate doubles?
(b) The depreciation rate falls by 15%
(c) Productivity rises by 15%
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Whenever real GDP declines, nominal GDP must also decline
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WHO IS JOHN MANYARD KEYNES
# ???? .. difference between gdp at market price and nnp at factor cost
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