Essay
A country has the per-worker production function 
yt = 5,
where yt is output per worker and kt is the capital-labor 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-labor ratio?
(b)What is the steady-state value of output per worker?
(c)What is the steady-state value of consumption per worker?
Correct Answer:
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(a)sf (k)= (n + d)k,so 0.2 × 5...View Answer
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