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Find the savings rate necessary to obtain the golden rule level of capital per worker.
d) At this savings rate what is the level of:
d1) consumption per worker
d2) investment per worker
Using the equation for the marginal product of capital and the values of the variables that you solved in this problem, calculate the marginal product of capital at the golden rule steady state level of capital. Show all step of work. Is this greater than, less than, or equal to the depreciate rate.
1) A) Draw a Solow Growth model in a steady state. Next using the graph, illustrate andexplain the influence of an increase in population growth. Be sure to compare the newsteady state with the…
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