A country has the per-worker production function
y_t = 6,
where y_t is output per worker and k_t is the capital-labor ratio.The depreciation rate is 0.1 and the population growth rate is 0.1.The saving function is
S_t = 0.1Y_t,
where S_t is total national saving and Y_t is total output.
(a)What is the steady-state value of capital-labor ratio?
(b)What is the steady-state value of output per worker?
(c)What is the steady-state value of consumption per worker?

Question

A country has the per-worker production function
y_t = 6,

A country has the per-worker production function y<sub>t</sub> = 6, where y<sub>t</sub> is output per worker and k<sub>t</sub> is the capital-labor ratio.The depreciation rate is 0.1 and the population growth rate is 0.1.The saving function is S<sub>t</sub> = 0.1Y<sub>t</sub>, where S<sub>t</sub> is total national saving and Y<sub>t</sub> is total output. (a)What is the steady-state value of capital-labor ratio? (b)What is the steady-state value of output per worker? (c)What is the steady-state value of consumption per worker?

where y_t is output per worker and k_t is the capital-labor ratio.The depreciation rate is 0.1 and the population growth rate is 0.1.The saving function is
S_t = 0.1Y_t,
where S_t is total national saving and Y_t is total output.
(a)What is the steady-state value of capital-labor ratio?
(b)What is the steady-state value of output per worker?
(c)What is the steady-state value of consumption per worker?

Quizplus · Accepted Answer

The Answer of A country has the per-worker production function y_t = 6, where y_t is output per worker and k_t is the capital-labor ratio.The depreciation rate is 0.1 and the population growth rate is 0.1.The saving function is S_t = 0.1Y_t, where S_t is total national saving and Y_t is total output. (a)What is the steady-state value of capital-labor ratio? (b)What is the steady-state value of output per worker? (c)What is the steady-state value of consumption per worker?

A Country Has the Per-Worker Production Function