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confused especially on number three. thanks in advance 1. Start with the capital accumulation equation, Ktir1 = (1 6)Kt + sAthlll' 1 and divide both

confused especially on number three. thanks in advance

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1. Start with the capital accumulation equation, Ktir1 = (1 6)Kt + sAthlll'\" 1 and divide both sides by Ail: . Show that the nal expression simplies to Km (1 + 910% = (1 on + snail-a 2. We have a problem. We want to use the equation you derived to study the dynamics of capital away from steady state. But note, we cannot derive a closed-form expression for AIE'Hl in terms of parameters and timet quantities! Instead, show that can derive an equation for AfftH if we rewrite \"scaled\" versions of the depreciation rate and savings rate. AREFl = _8'f{t + gkfila What are the formulas for 3 and E? Argue that 5 = 6 and E = 3 if gA = 0. 3. Find the steady state level of scaled capital IE}. First express in terms of 3, , and a; then express in terms of 9A, 6, s, and a

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