Question: Suppose the production function is y = 1 0 0 k 0 . 3 , the depreciation rate is 5%, the population growth rate is

Suppose the production function isy=100k0.3, the depreciation rate is 5%, the population growth rate is 2%, the rate of labor-augmenting technological progress is 3%, and the saving rate is 30%.

-What is the steady-state capital stock per effective worker?

-Is this economy saving above, below, or at the golden rule rate,

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