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Assume a Solow economy with labor-augmenting technological progress, Cobb-Douglas production function that is constant returns to scale in capital and labor (y= Ka (EL)-a),

Assume a Solow economy with labor-augmenting technological progress, Cobb-Douglas production function that is

Assume a Solow economy with labor-augmenting technological progress, Cobb-Douglas production function that is constant returns to scale in capital and labor (y= Ka (EL)-a), and the share of capital costs in total income that equals 50%. Population growth equals 2%, growth in the efficiency of labor equals 2%, savings rate equals 30%, and the depreciation rate equals 1%. Find consumption per effective worker in the steady state when the savings rate equals 30%.

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