Essay
(a)In the model of endogenous growth,if s = 0.1,A = 2,and d = 0.15,calculate the economy's growth rate.Show your work.
(b)If the depreciation rate declines to d = 0.10,calculate the economy's growth rate.Show your work.
(c)Is the impact on the growth rate arising from a change in the depreciation rate in the endogenous growth model the same as in the Solow model?
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(a)Growth rate = sA - d = (0.1 × 2)- 0.1...View Answer
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