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1. Suppose ine production is given by Y = 0.5 * K*/ 3(AN) /3. Suppose the depreciation rate is 2%, number of workers grows at

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1. Suppose ine production is given by Y = 0.5 * K*/ 3(AN) /3. Suppose the depreciation rate is 2%, number of workers grows at 2% per year and rate of technological progress is 3% per year. (a) If the saving rate is 14% then find the steady state values of capital per unit of effect worker and output per unit of effective worker.

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