# Consider the Solow model with a production function Y(t) = A k(t) L(t) 1

## Question:

Consider the Solow model with a production function Y(t) = A · k(t)^{α}L(t)^{1 − α}, where A is a fixed technological parameter. Explicitly solve for the steady-state value of the per capita capital stock and per capita income. How do these values change in response to a rise in

**(a) **The technological parameter A,

**(b) **The rate of saving s,

**(c) **α,

**(d) **δ, the depreciation rate, and

**(e) **The population growth rate n?

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