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Unformatted text preview: L t 1 But if population is growing at a constant rate n , as is assumed in this model, then L t L t 1 L t 1 = n i.e. L t L t 1 = 1 + n 13 A little care is required in discrete models in terms of stocks and ows (see section 1.3). Capital and labour are stocks and are deFned at the end of the period. Hence, K t and L t are capital and labour at the end of period t . lows, such as income, investment and savings are ows over a period of time . Thus, Y t , I t and S t are ows over period t ....
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This note was uploaded on 12/14/2011 for the course ECO 3023 taught by Professor Dr.gwartney during the Fall '11 term at FSU.
- Fall '11