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1.- Now assume that after looking at the Penn World Tables (PWT) we calibrate the share of capital, the saving rate, and the depreciation rate

1.- Now assume that after looking at the Penn World Tables (PWT) we calibrate the share of capital, the saving rate, and the depreciation rate of this economy, obtaining the following values:

Parameter Calibration

0.3
s 0.2

0.04
n 0.02

Based on the information of this table, compute the capital per-worker in steady state, k, as well as the product per-worker in steady state (SS),and

A) k^*=5.58 & y^*=1

B) k^*=1.68 & y^*=5.58

C) k^*=9.33 & y^*=1

D) k^*=1.95 & y^*=9.33

2.- Considering all the information given above, answer the following questions

  • In SS, the growth rate of capital per-worker is ktkt+1=
  • In SS, the growth rate of output per-worker is andtandt+1=
  • In SS, the growth rate of capital isKtKt+1=
  • In SS, the growth rate of output isANDtANDt+1=

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