Question: Consider the Solow Growth Model when answering the questions below. Suppose that output is produced using y=k^0.5 , the population growth rate=0.01 (1%), depreciation rate=0.04

Consider the Solow Growth Model when answering the questions below. Suppose that output is produced using y=k^0.5 , the population growth rate=0.01 (1%), depreciation rate=0.04 (4%), and the savings rate =0.1 (10%). a) Solve for the steady state level of k* b) Solve for the steady state level of y*, c*, and savings-per-worker at steady state. c) Suppose that the total factor productivity (TFP) rises so that the new production function is y=10k^0.5 All other values remain the same. Solve for the new k*, y*, c*, and savings-per-worker at steady state.

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