suppose were modeling an economy using the solow, Macroeconomics

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suppose were modeling an economy using the solow

Suppose we're modeling an economy using the Solow model. It begins in steady state. By what proportion does y? (the post-change steady-state per capita GDP) change in response to the following changes? Show your work/reasoning (a solution for y? will be a useful starting point).

(a) The investment rate doubles?

(b) The depreciation rate falls by 15%

(c) Productivity rises by 15%

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Macroeconomics: suppose were modeling an economy using the solow

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