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Unformatted text preview: k k where y = Y L and k = K L Solow Growth Model Assumptions * Y t = C t + S t and S t = sY t * K t +1 = (1dn ) K t + I t * Evolution of L and A : L t +1 = (1 + n ) L t , and A t +1 = A t (1 + ) * y t = Af ( k t ) Steady State * sy * = ( d + n ) k * * c * = (1s ) y * Demand for Money M d = PL ( i,Y ) = L ( r + e ,Y ) Money Growth and ination P P = M M Y Y Y r r r Quantity Theory of Money MV = PY = M M + V V = P P + Y Y...
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 '07
 Safarzadeh
 Accounting, Business, Macroeconomics

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