Suppose that the per-worker production function for an economy is given by y = 10k0.3. The depreciation rate is 18%, the savings rate is 20%, and the growth rate of labour hours is 5%. a. The steady-state capital stock per worker for this economy is 22.67. (Round to two decimal places as needed.) b. The steady-state income per worker for this economy is (Round to two decimal places as needed.)
Suppose that the per-worker production function for an economy is given by y = 10k0.3. The depreciation rate is 18%, the savings rate is 20%, and the growth rate of labour hours is 5%. a. The steady-state capital stock per worker for this economy is 22.67. (Round to two decimal places as needed.) b. The steady-state income per worker for this economy is (Round to two decimal places as needed.)
Chapter1: Making Economics Decisions
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Transcribed Image Text:Suppose that the per-worker production function for an economy is given by y = 10k0.³. The depreciation rate is 18%,
the savings rate is 20%, and the growth rate of labour hours is 5%.
a. The steady-state capital stock per worker for this economy is 22.67.
(Round to two decimal places as needed.)
b. The steady-state income per worker for this economy is
(Round to two decimal places as needed.)
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