8(k) sf (k) a) Given the figure above, briefly explain why the identified capital-labor ratio cannot...

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8(k) sf (k) a) Given the figure above, briefly explain why the identified capital-labor ratio cannot be a countries' steady state level. b) How can the government achieve the identified capital-labor ratio? That is, what policy could they employ? What are the dynamics? Explain your process and reasoning. c) In the Solow model we have y=f(k). Consider a war that cuts the labor force in half (but magically does not impact any capital), what happens to total output? What happens to total output per worker? 8(k) sf (k) a) Given the figure above, briefly explain why the identified capital-labor ratio cannot be a countries' steady state level. b) How can the government achieve the identified capital-labor ratio? That is, what policy could they employ? What are the dynamics? Explain your process and reasoning. c) In the Solow model we have y=f(k). Consider a war that cuts the labor force in half (but magically does not impact any capital), what happens to total output? What happens to total output per worker?

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a The identified capitallabor ratio cannot be the steady state level because at that ratio the margi... View the full answer