We consider Solow growth model. The production function is described by Y =K"(AL)-& where a E
(0; 1).The saving rate equals s €(0;1)and the depreciation rate equals 6 €(0; 1).The labor growth rate equals n >0 and the technology growth rate equals g >0.Solve following problems
a) find the dynamics of capital per unit of effective labor. (6 p.)
b) find the capital per unit of effective labor in the steady state. (2 p.)
c) present the diagram of solow growth model. (2 p.)
