Question: please answer 3. Suppose that three countries have the same technology and follow the logic of the Solow growth model. If country 1 always saves

please answer

please answer 3. Suppose that three countries have the same technology and

3. Suppose that three countries have the same technology and follow the logic of the Solow growth model. If country 1 always saves 10 percent of output (i.e s = .1), country 2 always saves 20 percent of output (i.e s = .2) and country 3 always saves 30 percent of output (Le s = .3) then what is GDP per capita in each country in steady state? What is the marginal product of capital in steady state in each country? Additional Assumptions: Y: = F(KtaLt) = (Ktl'3(Lt)'7s Kt+1 = Kt(1_ 5) + I: I; = SF(K,L), L+1 = Lt(1+ n) 6: .06,n =0 and s: .1,3 = 2,3 = .3 Hint: Find the capital-labor ratio k: that makes investment 6 = sF(k', 1) equal to depreciation die. It is easy to see that y = F(k, 1) = k'3 for the production function above

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