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Unformatted text preview: saving rate ( s ) and the depreciation rate ( & ) . 4. Derive the equations for steady-state output per worker and steady-state consumption per worker in terms of s and & . 5. Let & = 08 and s = 0 : 16 . Calculate the steady-state output per worker, capital per worker, and consumption per worker. 1 6. Let & = 08 and s = 0 : 32 . Calculate the steady-state output per worker, capital per worker, and consumption per worker. 7. What is the e/ect of an increase in the saving rate on output per worker over time? Show the transition from s to s 1 graphically. 8. Explain what happens to the level of output per worker and the growth of output per worker when the saving rate increases from s to s 1 . 2...
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This note was uploaded on 05/23/2011 for the course ECON 203 taught by Professor Jules during the Spring '11 term at University of Cape Town.
- Spring '11