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2.(20 points) An economy has the per-worker production function t y = 20 where t y is output per worker and t k is the
2.(20 points) An economy has the per-worker production function t y = 20 where t y is output per worker and t k is the capital-labor ratio. The depreciation rate is 0.12, and the population growth rate is 0.08. Saving rate is s=0.16. a. What are the steady-state values of the capital-labor ratio, output per worker, and consumption per worker? b. Repeat Part (a) for a saving rate of 0.1.
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