15. A Solow economy has production function $Y = K^{2/2}(AL )^{2/2}$. The savings rate is 30 percent. Depreciation is 1 percent. The labour force grows at 3 percent per year. Labour augmenting technological progress occurs at 1 percent per year. a. Provide a labelled diagram showing the Steady state equilibrium. b. Steady state GOP per effective worker grows at a rare of percent per year. c. Steady state GOP per worker grows at a rate of percent per year. d. Steady state GOP grows at a rate of percent per year. e. Show the Golden Rule equitibrium on your diagram. show all rough calculation

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15. A Solow economy has production function $Y = K^{2/2}(AL
)^{2/2}$. The savings rate is 30 percent. Depreciation is 1 percent. The
labour force grows at 3 percent per year. Labour augmenting
technological progress occurs at 1 percent per year. a. Provide a labelled
diagram showing the Steady state equilibrium. b. Steady state GOP per
effective worker grows at a rare of percent per year. c. Steady state GOP
per worker grows at a rate of percent per year. d. Steady state GOP grows
at a rate of percent per year. e. Show the Golden Rule equitibrium on your
diagram. show all rough calculation
Transcribed Image Text:15. A Solow economy has production function $Y = K^{2/2}(AL )^{2/2}$. The savings rate is 30 percent. Depreciation is 1 percent. The labour force grows at 3 percent per year. Labour augmenting technological progress occurs at 1 percent per year. a. Provide a labelled diagram showing the Steady state equilibrium. b. Steady state GOP per effective worker grows at a rare of percent per year. c. Steady state GOP per worker grows at a rate of percent per year. d. Steady state GOP grows at a rate of percent per year. e. Show the Golden Rule equitibrium on your diagram. show all rough calculation
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