Use the following production function and parameters in the Solow growth model to answer questions $1-2$ for a hypothetical economy:

$Y=4K^{14}(AL{)}^{\frac{3}{4}}$; population growth rate is $2\mathrm{.}1\%$; saving rate is $20\%$; depreciation rate is $7\%,$ and technological progress is $1\mathrm{.}1\%.$

There is an over$-$accumulation of capital in the economy so the saving rate should be reduced.

The saving rate needed to reach the golden rule level of capital per effective labour is $0\mathrm{.}25$