Introduction to Economic Growth 3rd Edition by Charles I.Jones (2013)

The Basic Solow Model

Q4)For an economy the following data set is given:

Investment (Saving) rate : 9.5%

Population growth rate : 1.3%

Depreciation rate : 5%

the""parameter of Cobb-Douglas type of production function = 0.6

a) Calculate the "capital per worker" at the steady state

b) Calculate the "output per worker" at the steady state

c) Calculate the "consumption per worker"

d) Draw a generic original Solow diagram for this economy and place/indicate all the corresponding numerical values of the variables on the diagram based on your calculated findings