Question

hi tutor

how to solve these question?

Find the Golden Rule capital stock and add it to

your graph in solow model. (Note: you need to maximise consumption per worker.)

Calculate: (Please show the entire calculation process)

• capital per person, y∗ g

• output per person, k∗g

• consumption per person, c∗ g

• investment per person, i∗g

thank you 🙂

(+ + It = Yt = F ( kt, it )
It = KEH – (1-8 ) kt.
( i-e. KTH = SPIKE, L ) + (1-8 ) KE )
KTH
It = $ Elkt, It )
steady – state :
k*
kt – KEH.
je. K* = KTH = kt.
RX .
7 xx
At steady- strate 8 /* = SF…Macroeconomics