What is the steady-state value of capital labor ratio, Cost Accounting

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1. A country has the per-worker production function  yt = 6 kt 0.5 

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 0.1. The saving function is  St = 0.1 Yt,

where St is total national saving and Yt is total output.

(a) What is the steady-state value of capital-labor ratio?

 

 


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