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Advanced Macroeconomics Problem Set #1: Solutions
4% Increase In Output (from 1.3459 To 1.4020), As Expected From The Elasticities In Part (b). Similarly With S= 0:3 The Long-run Values Increase To K = 4:8040, Y = 1:6013 And C = 1:0936. This Is A 50% Increase In The Savings Rate (from 0.2 To 0.3) Leading To An Approximately 1 1 50 = 71% Increase In Capital (from 2:6918 To 4:8040) And An ... 1th, 2022

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