Question: 4. In a Solow model with labour-augmenting technical progress and increase in thriftiness leads to actual saving in the new steady state. * (2 Points)
4. In a Solow model with labour-augmenting technical progress and increase in thriftiness leads to actual saving in the new steady state. * (2 Points) a higher a lower the same ambiguous change in 5. If the government increases government spending and proportional tax rate in such a way that output stays constant, the budget deficit * (2 Points) increases decreases stays unchanged changes ambiguously
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