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(a) Use the Solow growth model and the equations shown below to find the steady state values of:
Y/N
K/N
C/N
I/N
Equations:
Y/N = (K/N)1/2 (the per-worker production function)
s = .20
δ = .10
gA = 0
gN = 0
(b) Would it be a good idea to raise the saving rate, s, to .30? Show and explain.
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