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Given a Cobb- Douglas production function (follow the Appendix 3.2 to the chapter for further detail and practice)
Y (t) = K(t)α L(t) 1-α
where K (t) and L (t) are capital and labor respectively at time t. Assume population growth n and capital depreciation δ.
1. Write down important assumptions of Solow growth model
2. What is the steady state capital per capita, k*, and explain about it.
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