Question: Question 4. Consider Solow modelwith technological change. Suppose growth rate of technology increases from to '. How will the y e (output per effective worker),

Question 4.

Consider Solow modelwith technological change. Suppose growth rate of technology increases from to '.

How will the y_e(output per effective worker), k_e(capital per effective worker), g_ye(growth rate of output per effective worker), g_y(growth rate of output per worker), and g_Y(growth rate of output) change in the long run? (increase/decrease/stay the same).

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