2. Recall that general form of fundamental equation of growth in Solow model is described as follows: k: = s f(k) – (gs + 5)ka %3D Noting that at steady-state ks = 0 and hence a Using the fact kss= 0,...

Extracted text: 2. Recall that general form of fundamental equation of growth in Solow model is described as follows: k: = s f(k) – (gs + 5)ka %3D Noting that at steady-state ks = 0 and hence a Using the fact kss= 0, show the steady-state graphically and provide economic interpretation of the steady-state condition s- f(k ss) = (gs + 8)k s- b. Using the same graph you draw in part (a) explaim the transitional dynamics of the Solow. Hint: Define what happens if k. < and="" if="" k.=""> ks-