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  3. 1 a prove mp aif kokf kl starting from the...

Question: 1 a prove mp aif kokf kl starting from the...

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1. (a) Prove: MP()- A)If (k(o)-k()f (k())l, starting from the aggregate production function and using the chain rule. Suppose the Solow economy is in a steady state at some particular time to; i.e. k(to) k. Given values L(to) and A(to), what is K(to)? Suppose labour earns its marginal product. Describe the path of the logarithm of the wage for /2 to; i.e. derive & draw In(w(i)). (b) If production is Cobb-Douglas, what is the Golden-Rule saving rate in terms of parameters of the model?
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