1. A country has the per-worker production function: Yt = 6k?3 where y, is output per worker and k, is the capital-labor ratio. The depreciation rate is 0.1 and the population growth rate is 0.1. The saving function is St = 0.1Y; where S, is total national saving and Y, is total output.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Hi can explain to me how to find the:

1. steady-state value of capital-labor ratio?
2. steady-state value of output per worker?
3. steady-state value of consumption per worker?

1. A country has the per-worker production function:
2/3
Yt =
where y, is output per worker and kę is the capital-labor ratio. The depreciation rate is 0.1 and the
population growth rate is 0.1. The saving function is
St = 0.1Y
where S; is total national saving and Y, is total output.
Transcribed Image Text:1. A country has the per-worker production function: 2/3 Yt = where y, is output per worker and kę is the capital-labor ratio. The depreciation rate is 0.1 and the population growth rate is 0.1. The saving function is St = 0.1Y where S; is total national saving and Y, is total output.
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