Consider the Solow Growth Model with the production function F(K, N) zK0 3N 0 7 Assume the capital depreciates at a rate d 0 10, the population grows at a rate n 0 01, and the total factor productivity is z 1 Suppose the unit period is one year Give the expression of the per capita production function What is the golden rule level of capital k Calculate the golden rule saving rate s 4 Find the highest level of consumption per capital c

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Question: Consider the Solow Growth Model with the production function: F(K, N) = zK0.3N 0.7 . Assume the capital depreciates at a rate d = 0.10,

Consider the Solow Growth Model with the production function: F(K, N) = zK0.3N 0.7 .

Assume the capital depreciates at a rate d = 0.10, the population grows at a rate n = 0.01, and the total factor productivity is z = 1. Suppose the unit period is one year.

Give the expression of the per-capita production function.
What is the golden rule level of capital k ?
Calculate the golden rule saving rate s .

4. Find the highest level of consumption per capital c .

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