Consider the Solow growth model where Y = F(K, L). Y is output, K is capital stock and L is the work force. Derive the steady state equilibrium condition of this model if depreciation rate is zero, s is the savings rate, and n is the labour force growth rate, and draw the diagram showing the equilibrium.

i need part C,D,E,F,G       In the Solow growth model, output Y is produced using capital K and labour L.Assume the production function is Y =√K√L, which has total factor productivityconstant over time. The change over time in the capital stock is ∆K = I−δK, whereI is investment and δ is the depreciation rate. The labour force L is constant overtime. Investment I is equal to saving S, which is a fraction s of income.Let k = K/L and y = Y/L denote capital per worker and output per worker. In thisquestion, assume that δ = 1. Capital can be used for production and generates anincome for its owner before it depreciates.(a)  Show that y =√k and ∆k = s√k − k, and solve for the steady-statevalues of k and y where ∆k = 0.(b)  Using a diagram, explain intuitively why there is a steady statewhere growth in output per worker is zero, and why the economy convergesto this steady state in the long run.Total consumption divided by the number of workers is given by c = (1 − s)y.(c)  Using your answer…

Consider the basic Solow growth model. Let the aggregate production function be defined as Y = F(K, L) = K0.5 L0.5 where Y is output, K is capital, and L is labor. Furthermore, let the saving rate be 48%, population growth be 2%, and depreciation rate be 10%. a. Find the steady-state levels of capital per worker k and output per worker y.. %. b. Now assume that, because of the proliferation of financial technologies, the saving rate increases suddenly to 54% after one year. The steady-state level of capital will increase by ____%, and the steady-state level of output will increase by_

Consider the Solow growth model with labour-augmenting aggregate production function, Y = F(K, AL), where Y is output, K is the capital stock, and L is the labour force. The labour force (assumed equal to population) grows at a constant rate n > 0. Technological level A grows at a constant rate a > 0. С5. Prove analytically, that for the production function in the intensive form y = f (k) the expression for MPL = ƏY takes the form MPL = A[f(k) – kf'(k)]. Find the growth rate of real wage w = W /P for every moment in time and on the balanced growth path.