Describe on Solow model with government spending comprising.
Consider a standard Solow model but now introduce government spending:
a. G = gY. Derive k*.
b. G = G. Find an equation that determines k*. You do not need to solve for k*.
c. Can there be more than one solution for k* in (b)?
For the cases, plot description and savings against the capital stock. Identify the steady states.