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Consider the Solow growth model from class. The production function is Y = zKN1 , where 0 < < 1. 1.(a). Solve for the steady
Consider the Solow growth model from class. The production function is Y = zKN1 , where 0 < < 1. 1.(a). Solve for the steady state capital level for given s, z, n, d. 1.(b). Solve for the steady state consumption level for given s, z, n, d. What is the golden rule saving rate when z, n, d are fixed? 1.(c). Using your result, show how cgr changes with TFP(z). 1.(d). Describe your findings in words.
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