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(a) Use the Solow growth model and the equations shown below to find the steady state values of: Y/N K/N C/N I/N Equations: Y/N =

(a) Use the Solow growth model and the equations shown below to find the steady state values of:

Y/N

K/N

C/N

I/N

Equations:

Y/N = (K/N)1/2(the per-worker production function)

s = .20

= .10

gA = 0

gN = 0

(b) Would it be a good idea to raise the saving rate, s, to .30? Show and explain.

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