Suppose two neighboring economies have the above production function, but they have different parameter values. Atlantis has a saving rate of 28% per year and a population growth rate of 1% per year. Xanadu has a saving rate of 10% per year and a population growth rate of 4% per year. In both countries, g = 0.02 and δ = 0.04 . Solve for the steady-state value of y for each country.
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