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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.

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
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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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