Question 2 : Solow Growth Model [35 marks] Consider the following numerical example using the Solow growth model. Suppose that F(K, N) = K4/13 N9/13, Y = = F(K.N). Furthermore, assume that the capital depreciation rate is d = 0.04, the savings rate is s = 0.3, the population growth rate is n = 0.035, and the productivity is z = 1.75. Suppose Ko = 200 and No = 100. 1. Compute the values 1, y1, and c of the per-worker capital, output and consumption in period one. [05 marks] 2. Find the steady state per-capita capital stock (k*), output per capita (y*), and consumption per capita (c*). [10 marks] 3. Assume the economy is in the steady state of Question 2, compute the percentage change in z that is needed to increase the long run per capita capital by 5%. [06 marks]