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In the Solow model with constant technological knowledge (A), if the economy is initially below its steady-state capital stock:

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User Dingo
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Answer: catching up growth will occur

Step-by-step explanation:

In the Solow model with constant technological knowledge (A), if the economy is initially below its steady-state capital stock,. catching up growth will occur.

This is because, we are informed in the question that the Solow model has a constant technological knowledge. This implies that no innovation took place for that period, hence, the catching up growth will occur.

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User Kholdarbekov
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