Steady-state condition that investment equals depreciation

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Country A has the production function: Y=F(K,L)=K^(1/2)L^(1/2) a. What is the per-worker production function y=f(k)? b. Assume that country A experiences no population growth or technological progress and that 10 percent of capital depreciates each year. Using the steady-state condition that investment equals depreciation, find the steady-state capital stock k* as a function of the saving rate. c. Find the Golden Rule steady-state capital stock k*gold and the Golden Rule level of consumption (c*gold) d. To achieve the Golden Rule steady state, what is the saving rate s(gold) the policymaker should set?

Reference no: EM13892054

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