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ECONI002 Introductory Macroeconomics Also, assume that the saving rate is s-0.2 for Milkie and s-0.3 for Cookie, respecti
3. Show, using diagrams, the effects on output of an increase in the marginal propensity to save in the (i) basic Keynesian m

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ECONI002 Introductory Macroeconomics Also, assume that the saving rate is s-0.2 for 'Milkie' and s-0.3 for 'Cookie', respectively, while the two countries have identical population grow and depreciation rates both equal to 0.1. Which country has a higher steady state income per capita? Determine the steady state income per capita for each country. Which country has a higher steady state growth rate in per capita income? Why? a. b. Assume now that 'Milkie' experiences a productivity boom facing a higher value for A, A=2 now for this country. All else remaining the same, how would it affect the steady state income for 'Milkie'? Determine the new steady state income per capita for Milkie'. 5. Consider the following table, showing population projections for Australia. aaOn cerosurth rato
3. Show, using diagrams, the effects on output of an increase in the marginal propensity to save in the (i) basic Keynesian model (the 45-degree diagram) and (ii) the Solow- Swan model. Explain any differences. 4. Consider two countries Milkie' and 'Cookie. The two countries have identical per capita production function, y = Ak.S, with initially the same level of technology, A-1. Tutorial Tasks MacBook Pro & % # 7 6 2 4 5 P T E W CO 0 3
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