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Any chance I could get some help with this? UESTION 2 This question aims to explore some of the points discussed in Topic 2 (Solow-Swan

Any chance I could get some help with this?

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UESTION 2 This question aims to explore some of the points discussed in Topic 2 (Solow-Swan model). It is also designed to test your understanding of Chapter 5 of the prescribed textbook. Consider an economy with the general CobbDouglas production function: Y, = Axtarti'\". Answer the following questions assuming that labour grows at the rate 11 = 0 and adopting the assumptions made in lecture. The equation describing capital dynamics is: Kt+1 = K, + I, M, where dis a constant parameter. a) Obtain the steady state levels of the capital stock (K), output (Y), capital per worker (k), output per worker (y), consumption per worker (C/L), total savings (S), private investment (1), real wages (w) and real interest rates (1'). Make sure to show all your work. b) Assuming that s = 0.4, d = 0.1, o. = 0.4 and J = 1, calculate the steady state values of the variables in (a). Now, assume the policymaker successfully implemented a policy that resulted in the increase of the total factor productivity level to 2 (i.e., if = 2), ceteris paribus

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