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7. Assume the population growth is ?. Draw Solow diagrams (one diagram for each case) to...

7. Assume the population growth is ?. Draw Solow diagrams (one diagram for each case) to show the following. Be sure to label the old and new steady state capital and income. Also, for each case, please specify the growth rate of capital per worker, the growth rate of output per worker, the growth rate of total capital, and the growth rate of total output at the new steady state. (1) In the Solow model with population growth but without technological progress, depreciation rate drops from ?1 to ?2. (2) In the Solow model with population growth and technological progress, technological progress growth increases from ?1 to ?2. Assume the depreciation rate is δ. Use “per effective worker” in your diagram.

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