Question
please explanation on how to derive the value of k for the a part of the question.

Take the Solow model with a savings rate of s = 0.25, a depreciation rate of 8 = 0.05 and a Cobb-Douglas production function
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(b). The capital stock will move towards the steady state level of capital if it"s below or above the steady state. For example(as shown in the table)- for all the amount of capital stock below steady state, savings are greater than depreciation rate; so capital capital stock can be increased and it will move towards steady state. Similarly if the capital stock is above steady state, then depreciation is greater than savings; so capital stock will fall and move towards steady state. Only at the STEADY STATE level of capital total savings and depreciation are equal, hence there should be no change in capital stock. Sovings Recte Depriciation Rate = O.05 = 8 OBB Douglas Paoduction fundion wosker output per capital per worker a. Steady stat

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