Intermediate Microeconomics problem

Question 1 COnsider the following statement: The Solow model shows that the savings rate does not affect the growth rate in the long run, so we should stop worrying about the low [1.3. savings rate. Increasing the savings rate wouldn't have any important effects on the eoonomy. Explain why you agree or disagree with this statement! Question 2 Suppose that the economy's production function is given by :I 2 Y = K5 N5 and that both, the savings rate 3 and the depreciation rate 6 are equal to II]. II]. a. 'What is the steady-state level of capital per marker? b. What is the steady-state level of output per worker? Suppose that the economy is in steady state and that... in period t the depreciation rate increment permanently from [LII] to 112D