Question: Consider an economy whose production function is Y = K(AN)'*, with A = 4 x KIN. Suppose that it has a saving rate of .

Consider an economy whose production function is Y = K(AN)'*, with A = 4 x KIN. Suppose that it has a saving rate of . l, a population growth rate of .02, and an average depre- ciation rate of .03 and that 9 = .5. 3. Reduce the production function to the form y = ak. What is a? b. What are the growth rates of output and capital in this model

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