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1) Suppose the world is described by Solow model and that the production function has the constant elasticity of substitution (CES) production form: F(K, L)

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1) Suppose the world is described by Solow model and that the production function has the constant elasticity of substitution (CES) production form: F(K, L) = [ak + bL' ] Assume gz = g4 = 0, and that A, = _, = 1 for all t. a) Find the intensive form of this production function f(k;) b) Find the rental rate on capital r, in terms of k c) Find the wage w, in terms of k, d) Find the growth rate of capital in terms of current capital , and model parameters. e) Find the steady-state value of k in terms of model parameters

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