Analytical 3. Consider the Solow growth model y = f(k)= k. The population growth rate is 1% (0.01), savings rate is 30% (s = 0.3) and depreciation rate is 5% (8= 0.05). If ß = 0.4, find the steady-state level of the capital stock, k*.

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Analytical
3. Consider the Solow growth model y = f(k)= k³. The population growth rate is 1% (0.01),
savings rate is 30% (s = 0.3) and depreciation rate is 5% (8= 0.05). If = 0.4, find the
steady-state level of the capital stock, k*.
Transcribed Image Text:Analytical 3. Consider the Solow growth model y = f(k)= k³. The population growth rate is 1% (0.01), savings rate is 30% (s = 0.3) and depreciation rate is 5% (8= 0.05). If = 0.4, find the steady-state level of the capital stock, k*.
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