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Please answer each part of the question and show work on paper. Question 2 (Solow model) Suppose the production function is given as: y =

Please answer each part of the question and show work on paper.

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Question 2 (Solow model) Suppose the production function is given as: y = zk\" and s = 02,11 = 0.1, d = 0.1,2 = 1.5, a: = 0.3 (Note that these are all per capita values) 1. Find the equilibrium values of k*,y*, and c\" 2. What is the golden rule value of k* and S? (kgom and 390\") According to this, should the economy save more or less? 3. Now suppose the economy experiences breakthrough innovation such that 2 increases to 2. How will that change k*,y*, and c*? Show mathematically as well as through a graphical approach

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