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Economic Growth
For an economy the following data set is given:
Investment (Saving) rate : 9.5%
Population growth rate : 1.3%
Depreciation rate : 5% the"α" parameter of Cobb-Douglas type of production function = 0.6
a) Calculate the "capital per worker" at the steady state
b) Calculate the "output per worker" at the steady state
c) Calculate the "consumption per worker"
d) Draw a generic original Solow diagram for this economy and place/indicate all the corresponding numerical values of the variables on the diagram based on your calculated findings
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