1. Suppose we are in a simple augmented Solow growth model that is in an effective worker steady state and you are given the following information (this question is worth 8 points):

Population growth rate = 3%

Rate of growth of labor-augmented technical progress = 2%

Depreciation rate = 4%

Marginal product of capital = 14%

Capitals share of income = 30%

Use this information to answer the following questions:

1. What is the rate of long-term growth of the capital stock per capita?
2. What is the rate of long-term output growth?
3. Does the economy experience growth in per capita output? If so, at what rate?
4. Is there wage growth in this economy? If so, at what rate?
5. Is the economy currently maximizing consumption per worker? That is, is the economy at the Golden Rule? Explain.