401ps6answers-10 - ECON 401 Autumn 2010 ANSWERS FOR PROBLEM...

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ECON 401 Hartman Autumn 2010 ANSWERS FOR PROBLEM SET IV 1.a. The steady state value of k is * 8 k ; the steady state value of c is * 4.8 c . 1.b. The Golden Rule value of k is 3/2 (20 / 3) 17.213 GR k  ; the savings rate for the Golden Rule is 1/ 3 0.333 GR s ; consumption per person in the steady state is 5.164 GR c . 2. The steady state value of capital per unit of effective labor is * 8 k ; the steady state value of output per unit of effective labor is * 6 y ; the steady state value of consumption per unit of effective labor is
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