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Consider an economy described by the Solow model, with a Cobb-Douglas production function Y = AKOLI- a , constant saving rate y and depreciation rate

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Consider an economy described by the Solow model, with a Cobb-Douglas production function Y = AKOLI- a ", constant saving rate y and depreciation rate of capital equal to 8. (Note: A is total factor productivity). A. Find the capital's share of income o and labor's share of income (1 - o ). Write the production function in output per worker y and capital per worker k form. (1 points) B. At any point in time, the change in the capital stock is the difference between the amount of investment and the amount of depreciation. If I represents the quantity of investment and D represents the quantity of depreciation, then the change in the capital stock is represented as AK. Write and interpret an equation for the evolution of capital per worker. (1 points) C. Suppose that the fraction of output saved and invested y is 25% and the depreciation rate 6 is 5%. Further, suppose A is 1 and o is 1/2. Find the steady state level of capital per worker (kSs) and output per worker (y$$). (2 points)Now suppose, in the Solow growth model the production function given by Y = AK\" (h L)\"_' [1) with constant saving rate 1! depreciation rate of capital equal tr and h human capital per 1Worker. D. Repeat part B {2 point}. E. Suppose that the Erection of output saved and invested v is 25%, the depreciation rate a is 5% and population growth rate is 4%. Further, suppose h is 1, A is l and or is NZ. Find the steady state level of capital per I.vorker 1:55 and output per worker y\". [1 points] F. Now, suppose the country's population growth declined from 4% to 2% over the period of 1999 to 2999. Using the expression for the y\

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