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Lecture 3 24

Lecture 3 24 - depreciated capital so the capital per...

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The Steady State (Long run equilibrium) Intuition: marginal product is diminishing, so to grow an additional unit of output requires more and more investment. In the steady state, all investments are used to replace
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Unformatted text preview: depreciated capital, so the capital per person does not increase. As k does not change in the steady state, y does not change either – no growth in output per capita in the steady state ....
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