Question: Aggregate production function in the Solow-Swan model is Cobb-Douglas, y = k a with a = 0.3. Assume population growth n = 2%, technology growth

Aggregate production function in the Solow-Swan model is Cobb-Douglas,

y = ka with a = 0.3. Assume population growth n = 2%, technology growth g = 3%, and depreciation = 10%.

Question : Derive k, y, and c as functions of the model parameters and determine their values when the saving rate s = 15%.

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