(3) Prove that the law of motion of capital per effective worker in the Solow-Swan model...

Transcribed Image Text:

(3) Prove that the law of motion of capital per effective worker in the Solow-Swan model with labor-augmenting technology is = - kts f(kt) (8+n+g)kt, Kt where yt = f(kt) = F(kt, 1) = F( KK, 1), kt = A^, s is saving rate, & is depreciation Kt At Nt' rate, n = Nt/Nt, and g = 9 = At/At. (3) Prove that the law of motion of capital per effective worker in the Solow-Swan model with labor-augmenting technology is = - kts f(kt) (8+n+g)kt, Kt where yt = f(kt) = F(kt, 1) = F( KK, 1), kt = A^, s is saving rate, & is depreciation Kt At Nt' rate, n = Nt/Nt, and g = 9 = At/At.