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1. a. Use a production function and the subsistence line from the Malthusian model to show the
economy in a long run equilibrium. Briefly explain. b. Show the short and long run effects of a
one-time increase in the level of technology. Explain how the transition to the long-run takes
place. Discuss the short and long run effects of the increased technology on living standards.

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  • 1. 1. a. Use a production function and the subsistence line from the Malthusian model to show the economy in a long run equilibrium. Briefly explain. b. Show the short and long run effects of a one-time increase in the level of technology. Explain how the transition to the long-run takes place. Discuss the short and long run effects of the increased technology on living standards.