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QUESTION

Statement: Suppose the aim of the government is to increase the economic well-being of it's citizens.

Statement:

Suppose the aim of the government is to increase the economic well-being of it's citizens. According to the Solow-Swan model, the government should try to increase the savings rate, as this will lead to a higher steady-state level of capital and a higher level of steady-state output, and thus will improve economic well-being. 

Question:

Do you agree or disagree with the above statement?

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