Question 7. Consider a Solow growth model in which total output is Y=zKN1, where 00. So that N=(1+n)N. (a) Find the per-worker capital accumulation equation. (b) Find the steady-state quantity of capital per worker, k. (c) Interpret the effect of an increase in g for k. Show it in a diagram. (d) The government is benevolent (cares about the consumers) and wants to maximize the steady state consumption per worker. Write down the maximization problem that the golden rule capital per worker, kgr, solves. Find kgr (e) Let ggr be the golden rule government spending rate that maximizes the steady state consumption per worker. Find ggr. Question 7. Consider a Solow growth model in which total output is Y=zKN1, where 00. So that N=(1+n)N. (a) Find the per-worker capital accumulation equation. (b) Find the steady-state quantity of capital per worker, k. (c) Interpret the effect of an increase in g for k. Show it in a diagram. (d) The government is benevolent (cares about the consumers) and wants to maximize the steady state consumption per worker. Write down the maximization problem that the golden rule capital per worker, kgr, solves. Find kgr (e) Let ggr be the golden rule government spending rate that maximizes the steady state consumption per worker. Find ggr