Business, 23.03.2021 03:00 keananashville
Suppose that an economy can be described by the following set of variables: Output per effective worker: Savings rate (s) = 0.12 Depreciation rate (δ) = 0.05 Population growth rate (n) = 0.03 Rate of technological progress (g) = 0.03 (a) Find the steady-state value of capital per effective worker. (b) Find the steady-state value of output per effective worker. (c) Find the steady-state value of consumption per effective worker. (d) Find the growth rate of output per effective worker at steady-state. (e) Find the growth rate of output per worker at steady-state. (f) Find the growth rate of total output at steady-state (g) Calculate the Golden-Rule level of capital per effective worker for this economy. (h) What is the level of consumption per effective worker at the Golden-Rule level of capital per effective worker? [Hint: The savings rate necessary to reach the Golden Rule level will
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