Assume the economy is in a steady-state for all of the following questions. a. In a steady-state, we know that sf (k) = (8 +n + g) k. By rearranging this equation, we can prove that Of = d+n+g ; so the production function is constant and does not exhibit diminishing returns. S meaning the capital-output ratio is constant. S y d+n+g = sf = = 8 + n + g; so saving is a function of depreciation and the growth rates of population and technological progress. b. In the Solow model with technological progress, capital's share of income is income is 2 and labor's share of c. In the Solow model with technological progress, total capital income and total labor income grow the rate: d. In the Solow model with technological progress, the real rental price of capital grows at a rate of and Assume the economy is in a steady-state for all of the following questions. a. In a steady-state, we know that sf (k) = (8 +n + g) k. By rearranging this equation, we can prove that Of = d+n+g ; so the production function is constant and does not exhibit diminishing returns. S meaning the capital-output ratio is constant. S y d+n+g = sf = = 8 +n + g; so saving is a function of depreciation and the growth rates of population and technological progress. b. In the Solow model with technological progress, capital's share of income is income is 2 and labor's share of c. In the Solow model with technological progress, total capital income and total labor income grow the rate: d. In the Solow model with technological progress, the real rental price of capital grows at a rate of and