Question: 3. In the Solow model with technological progress, consider an economy that begins in steady state with 1 rate of technological progress of 2%. Suppose

3. In the Solow model with technological progress, consider an economy that begins in steady state with 1 rate of technological progress of 2%. Suppose gs. rises permanently to 3%. Assume a = iii a. |Conduct a growth accounting, gy = agk + g3, before the change and after the economy has reached its new balanced growth path. by In what sense does the growth accounting in part a) produce a misleading picture of this experiment

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