Question: Please explain and help me solve this question. Thank you Problem 3/5 (15 marks] Consider the following numerical example using the Solow growth model. Suppose

Please explain and help me solve this question. Thank you Problem

Please explain and help me solve this question. Thank you

Problem 3/5 (15 marks] Consider the following numerical example using the Solow growth model. Suppose that F(K,N) = zvKN 2 assume that n = 0, d=0.09, s = 0.4, z =1, N=25. The unit period is one year and initial capital stock per worker k = 4. 1. Find k* the steady state value of (a) The capital stock per worker(2 pts)) (b) Output per worker (2 pts]) 2. What is the time path towards k* (only compute for period 1 to 2). Summarize your results using a table.([5 pts]) 3. Calculate the golden rule saving rate s level of capital k r-(3 pts]) 4. Find the highest level of consumption per capital c** (3 pts])

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