Consider a numerical example using the Solow growth model. Suppose thatF(K, N)=K^0.3 N^0.7, with d=0.2, s=0.2, n=0.03, and z=1, and take a period to be a year.

a. Determine capital perworker, income percapita, and consumption per capita in the steady state

- the steady-state capital per worker is ____?

-the steady-state income per capita is ____?

-the steady-state consumption per capita is ___?

• (b) now suppose the economy is initially in the steady state that calculated in part (a) then s increases to 0.5.

-the new steady-state capital per worker is ____?

-the new steady-state income per capita is ____?

-the new steady-state consumption per capita is ___?