Problem 2 (Exogenous Growth Models) [ 35 marks ] COnsider the following numerical example using the Solow growth model. Suppose that F(K, N) = zK%N and d = 0.10, so = 0.2, n = 0.02, N = 100 and z = 1. Suppose K = 400 in period 0 and the unit period is One year. Suppose that the ec0n0my is initially in the steady state (at t=0) and in year One (t=1) saving rate increae to 0.4 and stay there forever. [hintz sszc) + (1 dc = 1 + R And Aggregate quantities are given by, eg. X = :1: a: N where w = %, where a," is per-worker quantity] k! 1. Find 16* the steady state per-capita capital stock, consumption per capita (6*) and output per capita (y*) for time t = 0. 2. Determine the golden rule saving rate, 8, capital per worker, kg\" output per capita, y}, and consumption, CE, for time t=0 3. Determine the aggregate quantities K, C' and Y of the capital stock, conSumption and output for years 1, 2 ,3, 4 and 5. Summarize your results using a table