Question: Consider an economy whose production function is Y = K(AN)1*, with A = 4 x KIN. Suppose that it has a saving rate of .1,

Consider an economy whose production function is Y = K(AN)1*, with A = 4 x KIN. Suppose that it has a saving rate of .1, a population growth rate of .02, and an average depre- ciation rate of .03 and that 9 = .5. :1. Reduce the production function to the form y = ak. What is a? I). What are the growth rates of output and capital in this model? 11% W} E'E'm

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