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The transition dynamics in the figure below best describe in version of the Solow model where
the population is constant. (Select all that apply.) an increase in the depreciation rate a negative
and permanent productivity shock a decrease in the saving rate a sudden one-time decrease in the
capital stock a positive and permanent productivity shock a sudden one-time increase in the
capital stock

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The transition dynamics in the figure below best describe in version o.docx

  • 1. The transition dynamics in the figure below best describe in version of the Solow model where the population is constant. (Select all that apply.) an increase in the depreciation rate a negative and permanent productivity shock a decrease in the saving rate a sudden one-time decrease in the capital stock a positive and permanent productivity shock a sudden one-time increase in the capital stock