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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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