Question: Consider the Basic Solow Model with exogenous growth: Y = AK (EL) 1-a C =( 1 -s) Y Y = C+I K' = I+ (1

Consider the Basic Solow Model with exogenous growth: Y = AK (EL) 1-a C =( 1 -s) Y Y = C+I K' = I+ (1 -8)K L' = (1+n)L E' = (1+9)E Assume the following values for the rest of this question: A = 100 a = 0.33 S = 0.12 6 = 0.06 n = 0.01 g = 0.03

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