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ECO 302_Intermediate Macroeconomics Week 3_Assignment 1_Answer

ECO 302_Intermediate Macroeconomics Week 3_Assignment 1_Answer

ECO 302_Intermediate Macroeconomics Week 3_Assignment 1_Answer

ECO 302_Intermediate Macroeconomics Week 3_Assignment 1_Answer

ECO 302_Intermediate Macroeconomics Week 3_Assignment 1_Answer

Assignment 1: The Solow Growth Model

1. Three basic assumptions of the Solow Growth Model and analysis of their compatibility with real-world economic conditions

2. Analyze the effects of an increase in population growth on the growth rate of capital per worker.

3. Describe the effects of a decline in the labor participation ratio on the growth rate of capital per worker with the population growth rate held constant.

4. Analyze the effects of a positive technology growth rate on the growth rate of capital per worker.

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