Unformatted text preview: d = 9% per year. Government purchases goods each year and pays these purchases using taxes on income. The government runs a deficit which is equal to 20% of its tax revenues. The tax rate on income is t = 50%. a. Write down the expressions for private saving per worker and government saving per worker as functions of k. What is national saving per worker? b. Calculate steady state capital labor ratio, output per worker, consumption per worker, and investment per worker....
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This note was uploaded on 02/04/2011 for the course ECON 221B taught by Professor Kuruscu during the Spring '07 term at UWO.
- Spring '07