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Question 1 Consider the Solow growth model seen in lectures. Use n to denote population growth. Which of the following is true in steady state AK AY Ak a. =0; AY = 0 K V AK AY Ak Ay b. K V y AK AY AK = 0 C. K Y =n k y 4K AY Ak =nik Ay = n d. K Y y e. None of the above Question 2 Say the depreciation rate o is 0.18, the savings rate s is 0.4, and population growth n is 0.02, and the production function Y = AK"LI-, with A = 2 and a = 1/3. Then in steady state capital per worker k' and income per worker y' are a. k = 5 and y = 10 b. k' = 8 and y' = 4 c. k' = 6 and y' = 3 d. k' = 12 and y' = 6 e. None of the above