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Consider the Solow growth model without technological change. The parameters of the model are given by: a = ll-5 [savings rate), 5 = [1.1 [depreciation

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Consider the Solow growth model without technological change. The parameters of the model are given by: a = ll-5 [savings rate), 5 = [1.1 [depreciation rate), 71 = l].|]5 {the population growth rate], and A = 1 [the technology parameter). Let k denote capital per worker; 1; output per worker and 0 consumption per worker. In addition, the production function is given by: Y = AKD'ELD'E, where Y, K and L denote the levels of aggregate output, capital and labour, respectively. a. Find the steady-state level of the capital stock per worker, is\". b. 'What is the golden rule level of k9 for this economy? Recall that the golden rule level of the capital stock in? maximizes consumption per worker in steady-state. Report your answer to two decimal places. c. Let's say that a benevolent social planner wishes to obtain k'\" = k9 in steady-state. What is the associated savings rate 39 that must be imposed by the social planner to support is"? d. lCompare your result in the previous part with the assumed savings rate s. Th obtain k9, do citizens need to save more or less? e. Discuss two to three economic policies that could help the social planner implement 39 in a real-world situation. f. In a graph, display both the golden rule and stead},r state solution for this economy

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