Level of steady- state consumption per worker in alpha

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Reference no: EM131246505

The economy of Alpha can be decribed by the Solow growth model. The following are some characteristics of the Alpha economy:

savings rate (s) 0.20

depreciation rate 0.12

steady state capital per worker (k*) 4

population growth rate (n) 0.02

steady-state output per worker 20000

a. What is the steady-state growth rate of output per worker in Alpha?

b. What is the steady- state growth rate of total output in Alpha?

c. What is the level of steady- state consumption per worker in Alpha?

d. What is the steady-state level of investment per worker in Alpha?

Reference no: EM131246505

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