=()1Y=K(LE)1

The economy has a capital share of 0.25, a saving rate of 42 percent, a depreciation rate of 3.75 percent, a rate of population growth of 6.00 percent, and a rate of labor-augmenting technological change of 4.0 percent. It is in steady state.

Solve for capital per effective worker ()(k), output per effective worker ()(y), and the marginal product of capital.

=

=

marginal product of capital =