Question 3: Solow Growth Model with Population Growth Assume the production function is Y = K\"3 L\". In this economy, there is no technological progress. The marginal propensity to consume is 80%, the depreciation rate is 1.5% and the population growth rate is 2%. a) b) c) d) e) 1) g) h) i) Transform the production function into per worker terms. What is the growth rate of capital per worker at steady state in this model? Write out the steady state condition for this economy using the symbols in class. Solve for the steady state per worker capital stock k1 *. Solve for the steady state per worker output, consumption and investment: )2; *, c; *, i1 *. Illustrate the steady state for this economy on a Solow growth model diagram. Carefully label the steady state values you found in c) and d). Label the steady state Point A. What is the steady state growth rate of output in this model? What is the steady state growth rate of output per worker? Find the golden rule kg in this economy. Suppose that the savings rate in this economy increases. Illustrate the effects of this on your Solow growth diagram. Label the new steady state Point B. What happens to the steady state values of per worker capital, output, and investment? Label these new values k1 *, y 1 *, c1 *, i1 *