What are the steady-state values of the capital-labor ratio

Reference no: EM13209671

An economy has the per-worker production function: yt=3kt0.5, where yt is output per worker and kt is the capital-labor ratio. The depreciation rate is 0.1, and the population growth rate is 0.05. Savings is: St=0.3Yt , where St is total national savings and Yt is total output.

a.) What are the steady-state values of the capital-labor ratio, output per worker, and consumption per worker?

b.) Repeat part (a) for a saving rate of 0.4 instead of 0.3.

c.) Repeat part (a) for a population growth rate of 0.08 (with a growth rate of 0.3)

d.) Repeat part (a) for a production function of: yt=4kt0.5. Assume that the saving rate and the population growth rate are at their original values.

Reference no: EM13209671

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