Question: Question 3 (Needs calculus) Dynamic inefficiency. In the context of the Solow growth model with no technological progress, i.e., A = 1, what is the

Question 3 (Needs calculus) Dynamic inefficiency. In the context of the Solow growth model with no technological progress, i.e., A = 1, what is the steady state savings rate, s, that maximises steady state consumption. At this savings rate, what are the steady state capital stock per capita and output per capita? What is the marginal product of capital (MPK) at this savings rate? Show this point in a Solow diagram. Can this economy save too much? That is save more than what is optimal

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