(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

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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

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