Problem based on solow growth model


Question 1: In the following Solow growth model, consider the capital-labor ratio K* satisfying

S (K*)= (n +) K*

What is K* called? What is k at K? Explain equation1 in words then explain carefully how this is related to the Solow model diagram.

Question 2: Present and Explain the diagrammatic model that shows the possible need for a Big Push, using your own words to express the main points.

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Microeconomics: Problem based on solow growth model
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