Question
Consider the Solow growth model, where population grows at the constant rate n, N=(1+n)N, s = saving rate, the production function is given by Y=zF(K,N),
Consider the Solow growth model, where population grows at the constant rate n, N=(1+n)N, s = saving rate, the production function is given by Y=zF(K,N), the evolution of capital is given by K=(1-d)K+I where d = depreciation rate and I = investment. The income expenditure identity is given by Y = C+I and S=I. Please upload pictures of your graphical analysis.
Given that in steady state all aggregate variables grow at the rate of n, using your answer in (a) derive the equation that expresses the steady state solution to the model and graph it. Clearly label your graph and indicate (k*).
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