Question: 12. Please attach w solution Consider the combined Solow-Romer model. Suppose output is growing along its balanced growth path (BGP). Suppose at time to, the

12. Please attach w solution

Consider the combined Solow-Romer model. Suppose output is growing along its balanced growth path (BGP). Suppose at time to, the depreciation rate increases. What do you predict will happen to the balanced growth path in this economy? O BGP will shift down in a parallel way. O BGP will shift up in a parallel way O BGP will become flatter O BGP will become steeper

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