Question: This is a Solow model question. There is no government and no foreign sector. In equilibrium savings (S) must equal (I) investment. Agents save

This is a Solow model question. There is no government and no foreign sector. In equilibrium savings (S) must equal (I) investment. Agents save a constant fraction of output according to S = SY Output is given by a Cobb-Douglas production function Y = Ka(QN)-a. Q is labor-augmenting technological progress and grows such that Q' = (1 + q)Q - Growth of capital is described by K' = K(1 d) +1 Population grows according to N' = (1 + n)N Define little letters as big ones divided by QN, such that little letters refer to values per efficiency unit of labor.

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