C. Imagine that advances in material engineering leads to a decreased level of depreciation, 8. Assuming a Cobb-Douglas production function, show graphically how this decrease would affect the steady state level of capital. Explain intuitively why the change in ♂ had this effect.

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A.9 Obtain the golden rule savings rate for an economy with a production function F(K,N) KN. How does an increase in the depreciation rate affect the golden rule savings rate?

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Given a saving rate of 4%, a depreciation rate of 1%, and a production function inwhich y = k0.5 where y is output per worker and k is capital per worker, calculate thesteady state values fori. capital, ii. output, iii. consumption, and calculate the golden rule steady state level of capital

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QUESTION 2 Assume we have a Cobb-Douglas production function of Y-KO505 Assume K-160, L-40, a-025, 6-0.10, and initial k-4.0. Derive the steady-state level of capital (k) (calculate unt Ak is at a level where the first 2 decimal points are 0. 1024