If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the solow model predicts that output will grow and that the new steady state will approach:

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21-10-2017
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If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the solow model predicts that output will grow and that the new steady state will approach:

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Erudite1 Erudite1 · Answer 1 · 2017-11-03T15:56:13+01:00

Erudite1 Erudite1

03-11-2017

The Solow model predicts that output will grow and that the new steady state will approach THE SAME LEVEL OF OUTPUT PER INDIVIDUAL AS BEFORE.
The Solow growth model is a standard model of economic growth. The model postulates that growth of per capital output is the result of capital accumulation and technological advancement.

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