Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 17, Problem 3WNG
To determine
Relationship between production function and the long run
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Suppose you add a variable rate of population growth to a two-sector model of growth.
Draw and properly label a graph on how the production function, investment requirement line, and saving line look like.
Does the addition of the variable rate of population growth to this model help you explain anything that a simpler two-sector model with a fixed rate of growth, or a one sector model with variable population growth, cannot? Expound.
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