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Consider an econorng,r described by the Solow model, with a Cobb-Douglas production function Y = AK'HLI' a constant saving rate 1' and depreciation rate of

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Consider an econorng,r described by the Solow model, with a Cobb-Douglas production function Y = AK'HLI' "a constant saving rate 1' and depreciation rate of capital equal to 6. (Note: A is total factor productivity}. A. Find the capital's share of income t1 and labor's share of inoorne (l - a II. Write the production function in output per Worker 3' and capital per Worker 1-: form. (1 points} B. At any point in time, the change in the capital stock is the difference hetwmn the amount of investment and the amount of depreciation. If I represems the quantity of investment and D represents the quantity of depreciation1 then the change in the capital stock is represented as ax. Write and interpret an equation for the evolution of capital per worker. (1 points} C. Suppose that the fraction of output saved and invested v is 25% and the depreciation rate 5 is 5%. Further, suppose A is l and or is HZ. Find the stead}r state level of capital per Worker {1:55) and output per Worker W55) (2 points] Now suppose, in the Solow growth model the production function given by Y = AK\" (h L)\"' a} with constant saving rate 1 depreciation rate of capital equal tell and h human capital per vvorker. D. Repeat part B {2 point}. E. Suppose that the fraction of output saved and invested v is 25%,. the depreciation rate 3 is 5% and population growth rate is 4%. Further, suppose h is 1, A is l and u is NZ. Find the steady state level of capital per worker 1:55 and output per worker v55. (1 points) F. Now, suppose the country's population growth declined from 4% to 2% over the period of 1900 to RUDD. Using the expression for the 3:\

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