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Hi,I need avswer for this qusition.Br/HG Question 1 Consider a version of the Solow model where...

Hi,I need avswer for this qusition.Br/HG

Question 1 Consider a version of the Solow model where population grows at rate n. Assume that technology is Cobb-Douglas so that output is given by Yt = Kα t L (1−α) t . Capital depreciates at rate δ and a fraction s of income is invested in physical capital every period.

a. Write down an expression describing capital accumulation in this economy and solve for the steady-state levels of capital and output per worker. Illustrate your answer in a diagram.

b. How is steady-state capital per worker affected by a decrease in the saving rate? Illustrate your answer in a diagram and provide intuition.

c. How is steady-state capital per worker affected by an increase in the population growth rate? Motivate your answer using a diagram.

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