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10. Consider the following version of Solow's model of economic growth with no population growth and no technological progress: 8. J: = kt: Ct =

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10. Consider the following version of Solow's model of economic growth with no population growth and no technological progress: 8. J": = kt\": Ct = (I ' 51?: [t = 53': kt+1 = kt + 33": ' {n + 5W: S = 0.20 5 = 0.05 it = 0.00 If capital per worker [k] is 9.0 at time i] {k0 = 9.0), what will capital per worker he at times 1, 2, and 3? What will income per person {1;} be at times Cl, 1, 2, and 3? What is the steadvstate value of capital per worker [k'} for this economy? When capital per worker reaches its steadystate value, what will income per person [v], consumption per person {c}, and investment per person [i] be? If the savings rate [5) doubles from 0.20 to 0.4!), what will the new steadvstate vaiue of capital per worker be? In the new steadv-state, what will v, c, and i be

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