A report on the differences in the labor force growth rate in the United States and Latin America contains the following statement: “A longterm slowing of labor force growth could reduce the pace of...

growth rate in the United States and Latin America

contains the following statement: “A longterm

slowing of labor force growth could reduce

the pace of overall economic growth.” Assuming

no change in the capital stock, use the Solow

growth model to explain whether you agree with

this statement. Draw a graph to support your

answer. Are there factors not taken into account

in the Solow model that might change your

assessment of the statement? Briefly explain.