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Question 4: The Solow Growth Model Assume in a very simple economy, Output per worker (yt) is a mction of Capital per labour (kt) in
Question 4: The Solow Growth Model Assume in a very simple economy, Output per worker (yt) is a mction of Capital per labour (kt) in the form: 3': = 3'2 o The initial Capital Stock: k1 = 3 units 0 The savings rate: 3 = 0.2 o and the rate of depreciation: 6 = 0.1 Using equations and identities frOm the Solow Growth Model, calculate the level of capital It. Output y, Consumption 15, depreciation and change in capital from the eqaaon of motion
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