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Question 3 Refer to main equation of the growth model obtained in question 2. a. Using a diagram, show that the Solow model converges to
Question 3 Refer to main equation of the growth model obtained in question 2. a. Using a diagram, show that the Solow model converges to a unique steady state from any initial k(0), higher or lower than the steady state k*. b. Show that the capital per worker (and therefore the output per worker) growth rate declines as the economy approaches the steady state k*. c. In the steady state, dk/k = 0. Use this condition, along with the form of the production function, to get an expression for the steady state capital, output, investment and consumption per worker: k* and y*, i* and c*
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