Problem
In the solow growth model, with labor-augmenting technological progress and population growth, if the production function is y= k^1/2, s= .15, depreciation= .02, n=.02 and g= .01:
a. What is the steady-state level of capital per effective worker?
b. What is the level of consumption per effective worker at this steady-state level?
c. What is the golden rule level of capital per effective worker?
d. What is the savings rate necessary to obtain k*gold?
e. What is the golden rule level of consumption?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.