(a) Given that
Y = F(K, L) and K
? = sY – dK , derive and explain the two basic equations
of Solow model.(4 marks)
(b)
Using diagrams explain the steady state in the Solow model and what
happens to this state when savings rate and population growth changes. (9 marks)
(c)
Giving examples, explain the difference between capital deepening and
capital widening and how they relate to economic growth and development.(4 1/2 marks)
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