Essay
A country has the per-worker production function yt = 5kt⁰.⁵,where yt is output per worker and kt is the capital-labour ratio.The depreciation rate is 0.2 and the population growth rate is 0.05.The saving function is St = 0.2yt,where St is total national saving and yt is total output.
a.What is the steady-state value of the capital-labour ratio?
b.What is the steady-state value of output per worker?
c.What is the steady-state value of consumption per worker?
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a.sf(k)= (n + d)k,so 0.2 × 5 k...View Answer
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