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Unformatted text preview: value K t No no shift No no change in steady-state value but. .. (see class notes)---------SR: MPK LR: MPK SR: MPL LR: MPL As K t k falls at this k, required investment is less than actual investment k rises back to its steady state value s Yes Actual investment per worker curve-- s*A*k Yes increase increase increase up or down depending onsee class notes decrease increase see class notes A Yes per-worker production fcn. (y=A*k ) Actual investment per worker curve ( s*A*k ) consumption per worker curve- c Yes increase increase increase increase no change increase see class notes n Yes Required investment per worker curve-- i = ( +n)k consumption per worker curve- c Yes do this on your own...
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- Spring '10