Question 4: The Solow Growth Model In the Solow Growth Model, a country's production function is defined by the following: Y=F(K/L)=k0.5 Where K is capital and L labour; labour grows at a rate ( n), and the economy faces depreciation at a rate () The initial Capital Stock per worker: k1=9 units The savings rate: s=0.20 and the rate of depreciation: =0.1 Using equations and identities from the Solow Growth Model, calculate the level of capital k, Output y, Consumption c, depreciation and change in capital from the equation of motion for periods 1, 2 and 3 . Comment on the accumulation of capital and output over the three periods. (Total 20 marks) Question 4: The Solow Growth Model In the Solow Growth Model, a country's production function is defined by the following: Y=F(K/L)=k0.5 Where K is capital and L labour; labour grows at a rate ( n), and the economy faces depreciation at a rate () The initial Capital Stock per worker: k1=9 units The savings rate: s=0.20 and the rate of depreciation: =0.1 Using equations and identities from the Solow Growth Model, calculate the level of capital k, Output y, Consumption c, depreciation and change in capital from the equation of motion for periods 1, 2 and 3 . Comment on the accumulation of capital and output over the three periods. (Total 20 marks)