This video was recorded for an intermediate level macroeconomic course tutorial section.

We focus on the model's underlying maths, extending the simple solow model to include technology growth and population growth.

We'll derive the new law of motion of capital (the equation that defines how capital is accumulated). We'll get as close as possible to deriving the steady state level of per-worker-capital (k) and per-worker-output (y) and aggregate output (Y), capital (K), consumption (C and c), investment/savings (I and i). We find the steady state levels of capital-per-effective-worker (k\hat) and output per-effective-worker (y\hat). Ending with a discussion of 'steady state' vs. balanced growth paths.

This video is part one-of-many.