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(4) Consider a discrete-time Solow growth model characterized by the Cobb- Douglas aggregate production function:

`Y=K^(\theta )N^(1-\theta )`

where the technology level

`(A)`

is constant at one, and the population size N is constant. The parameter

`\theta `

is between zero and one. Share s of output

`Y`

is saved (invested, with the remainder consumed), and share d of capital K depreciates. Thus, capital evolves according to the following law of motion.

`K^(')=(1-d)K+sY`

(i) Find the steady state level of capital per person