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i) Suppose that the depreciation rate decreases. In the Solow growth model, determine the effects of this on the quantity of capital per worker and
i) Suppose that the depreciation rate decreases. In the Solow growth model, determine the effects of this on the quantity of capital per worker and on output per worker in the steady state. Explain the economic intuition behind your results.
ii) Suppose total factor productivity increases, determine by using diagrams how this affects the golden rule quantity of capital per worker. Explain your results.
iii) Determine the effects of an increase in the population growth rate on the golden rule quantity of capital per worker. Explain your results.
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