Assume that the per-worker production function is yt = 2kt 0.5. The saving and depreciation rates are

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Assume that the per-worker production function is yt = 2kt 0.5. The saving and depreciation rates are estimated at 0.2 and 0.04, respectively.

a) Calculate the capital-labor ratio steady state for this economy.

b) Calculate consumption per worker at the steady state.

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