1. δ= 0.04n= (b) The new-n1
Assume that the per-worker production function is Yt = 5 * Kt^(1/2). Further, assume that the saving rate, s = 0.2, the depreciation rate , and the population growth rate, 0. Calculate the following:
(a) The steady-state values of the capital-labor ratio, K*, output per worker, Y* , investment and saving per worker, i* and s*, and consumption, c* .
steadystate values of the capital-labor ratio, output, investment, and consumption (K1*, Y1*, i* and c* ), if there is population growth so that = 0.06.
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