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Unformatted text preview: (d) (1.5 marks) Define the Golden Rule level of capital. Under what condition Golden Rule level of capital stock is achieved? Illustrate in a diagram. (e) (1 marks) What is balanced growth in steady state by Solow? What is the growth rate of output per worker on the balance growth path (BGP)? Bonus (1 mark) Briefly explain why real wage grows at the same rate with output per worker on the BGP....
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- Spring '11
- Beryl Li