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5. (For ECON 209 ONLY) Consider the Solow growth model. Answer the following questions. (a) (12.5 points) Write down the equation that solves for capital
5. (For ECON 209 ONLY) Consider the Solow growth model. Answer the following questions. (a) (12.5 points) Write down the equation that solves for capital per capita in the steady state (no points so far). Clearly explain the intuition behind this equation. (b) (12.5 points) Suppose population growth rate is 2 percent, depreciation rate is 3 per- cent, and aggregate production function is Y = zF(K, N) = zKo:2NO.8. Suppose total factor productivity is equal to 4. Find the maximum income per capita in the steady state
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