Question: help with question 3 3. [35 points total] Consider the Solow model with the government. In every period, the government purchases goods in the amount
help with question 3
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3. [35 points total] Consider the Solow model with the government. In every period, the government purchases goods in the amount of G; = 9L, 9 2 0, and collects tax I} from households. The government always balances the budget so that G; = I} in any period. Due to the tax, saving and consumption of households are determined as constant fractions of after-tax income Y; T; : S:=S(Y.e-T:)a Ct=(1_3)(YtTt)a 0
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