Question 3 : Solow Growth Model [10 marks] Consider the Solow Growth Model with the production function: F(K, N) = (K + 2K1 /2 N1 /2 + N), Y = =F(K, N). Assume 10% of the capital is lost each period due to depreciation and the population grows by 2.5 each period. The consumer in this economy saves 40% of his income. The total factor productivit is given by z = 0.1. 1. Compute the steady state k* in this economy? [05 marks] 2. Compute the Golden Rule **, s**, and c** . [05 marks]