Question: Please solve question 2. A, B, C. Thank you! 2. Consider the Solow model with population growth and no technological progress. Suppose a country's production

 Please solve question 2. A, B, C. Thank you! 2. Consider

Please solve question 2. A, B, C. Thank you!

the Solow model with population growth and no technological progress. Suppose a

2. Consider the Solow model with population growth and no technological progress. Suppose a country's production function is: Y ( K, L) - KAL3 Depreciation is 1%(.01). Hint: Slides should be helpful, but you must fully derive every answer, not just use solutions from slides. a. Derive the per capita production function. b. The savings rate is 25%(.25), What is the law of motion? c. The savings rate is 25%(.25). At time 1 the per capita capital stock is 1, what is the change of per capita capital between period 1 and 2? What is the level of per capita capital at time 2

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