ECON 400 Per capita GDP in the long run
Per capita GDP in the long run. Suppose an economy is in the steady state of the textbook Solow model. Calculate the percentage change of the steady-state level of output per capita in response to each of the following changes?
1. The investment rate doubles.
2. The depreciation rate falls by 10%.
3. The productivity level rises by 10%.
4. An earthquake destroys 75% of the capital stock.
5. A more generous immigration policy leads the population to double