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In the Solow growth model with population growth and technological change, the break-even level of investment must cover:

- Depreciating capital
- Capital for new workers
- Capital for new effective workers

Answer :

The break-even investment level in the Solow growth framework must include funds for depreciating capital, new worker capital, and new effective worker capital.

According to the Solow model, a rise in the rate of population growth accelerates the growth of total output but has no long-term impact on the growth of output per person. The stable level of per capita output decreases as the rate of population growth rises. The Solow Growth Model demonstrates how long-term invested capital and output in an economy are impacted by saving money, labor force expansion, and technological advancements. Higher economic growth occurs as the capital stock rises and the economy's production rises. The Solow Growth Model is an independent economic growth theory that examines changes in the amount of output that an economy produces over time as a result of variations in the rates of population increase, savings growth, and technological advancement.

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