The economy of Alpha can be described by the Solow growth model. The following are some characteristics of the Alpha economy:
saving rate (s)
0.20
depreciation rate (TM)
0.12
steady-state capital per worker (k)
4
population growth rate (n)
0.02
steady-state output per worker
20,000
a.What is the steady-state growth rate of output per worker in Alpha?
b.What is the steady-state growth rate of total output in Alpha?
c.What is the level of steady-state consumption per worker in Alpha?
d.What is the steady-state level of investment per worker in Alpha?
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