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Can you please help me solve this problem? Thank you Question 2 : Solow Growth Model [35 marks] COnsider the following numerical example using the

Can you please help me solve this problem? Thank you

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Question 2 : Solow Growth Model [35 marks] COnsider the following numerical example using the Solow growth model. Suppose that F(K, N) = K4/13N9/13, Y = zF(K.N). Furthermore, assume that the capital depreciation rate is d = 0.04, the savings rate is s = 0.3, the pepulation growth rate is n = 0.035, and the productivity is z = 1.75. Suppose K.) = 200 and N0 = 100. 1. Compute the values 361, 3,1, and c1 of the per-worker capital, output and consumption in period one. [05 marks] . Find the steady state per-capita capital stock (k*), output per capita (y*), and consumption per capita (6*). [10 marks] . Assume the economy is in the steady state of Question 2, compute the percentage change in 2 that is needed to increase the long run per capita capital by 5%. [06 marks] . Assume the economy is in the steady state of Question 2 and suddenly, 2 decreases by 10%, calculate the percentage change in S that is needed to keep the long run per capita output unchanged. [06 marks] . Assume the economy is in the steady state of Question 2 and n goes down by 5% while 2 increases by 5% and .9 increases by 5%. Using the Taylor approximation, evaluate the contribution of each variable to the total change in the steady state consumption (3*. [08 marks]

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