. Assume that a country's production function is Cobb Douglas with constant returns to scale. The ratio of capital to output is 3, and the growth rate of output is 3 percent. Also, 12 percent of GDP is used to replace depreciating capital. And capital income share is 30 percent of the total income. Capital is paid at its marginal product. Please use Neoclassical model developed in Chapter 3 and Solow growth model in Chapter 9 with population growth and technology progress.

a. If the economy is already in a steady state, what must be the saving rate?

b. If the economy decides to achieve the Golden Rule level of capital and actually reaches it, what will be the marginal product of capital at the Golden Rule?

c. Calculate what must the saving rate be to achieve the Golden Rule level of capital.