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In the Solow Growth model, what is the level of investment per capita that ensures that...

  1. In the Solow Growth model, what is the level of investment per capita that ensures that capital-labor ratio stays unchanged ________ (hint: it is not equal to skt).

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In the Solow Growth model, what is the level of investment per capita that ensures that capital-labor ratio stays unchanged ___dkt_____

Capital-labor ratio stays unchanged if investment equals depreciation.
Change in capital stock = investment - depreciation = 0
So, investment = depreciation

Depreciation is given by dkt where d is the rate of depreciation and kt is the capital labor ratio.
So, capital-labor ratio stays unchanged if investment per capital equals dkt.

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