Given the production function in #58. For country X & Y Assume Technology is 100. Savings rate = 10%, depreciation rate = 20% and population graowth rate = 3%. Also initital capital per worker is 100 in both. HOWEVER Initial Labor is 100 for country X and 200 for Country Y.
a) Which country has the higher steady state of output per worker?
b) Which country in the initial time period grows fastest?
c) What is the steady state of output for each country?
d) How much does that change if population growth rate DECREASES to 2%.
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