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Consider the following Solow growth model for the following two questions Population growth rate: n = 0 Savings rate: s = 0.2 Depreciation rate: d

Consider the following Solow growth model for the following two questions

Population growth rate: n = 0

Savings rate: s = 0.2

Depreciation rate: d = 0.1

Total factor productivity: z = 1

Aggregate production function: Y = zF(K,N) = zK0.3N 0.7

Law of motion for capital: K' = (1-d)K + I

a) Find the steady state per person consumption, cSS .

b) Find the golden rule savings rate, sGR

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