Question: Solve it as soon as possible 2 Solow with Constant Growth In the lecture (slides) we demonstrated that by redening the variables of the model

Solve it as soon as possible

Solve it as soon as possible 2 Solow with Constant Growth In

2 Solow with Constant Growth In the lecture (slides) we demonstrated that by redening the variables of the model as stationarized variables we could introduce constant growth (9;) in productivity, zt, and constant growth (9;) in labor, L. We proved that a steady state existed for the stationarized variable 15,. We also showed that at that steady state, capital, Kt, grows at rate 9,; + 9;. Give the production function below, what is the growth rate of output, K, at steady state? What is the growth rate of per capita output, E, at steady state? What should be the form of the stationarized variable, a? Y: = Kf(z,L,)1'\" H c t I va : e W '.:C CC 56?? 'IQS

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