a) In the steady state, assume that the growth rate of population is -1%, the rate of depreciation is 8%, the savings rate is 10%, and the rate of growth of technological progress is 4%. How fast does consumption grow? How fast does consumption per worker grow? Explain. (15 points) This is a Solow model question. There is no government and no foreign sector. In equilibrium savings (S) must equal (I) investment. Agents save a constant fraction of output according to S=sY Output is given by a Cobb-Douglas production function Y = K \"(QN )1_\". Q is labor-augmenting technological progress and grows such that Q' = (1 + q)Q Growth of capital is described by K ' = K (1 d) + I Population grows according to N ' = (1 + n)N Define little letters as big ones divided by QN, such that little letters refer to values per efciency unit of labor