4 Minutes, 46 Seconds Suppose that the economy of Rabbit Republic is characterized by the following functions: Y =0.57K/N C = (1 - 8) Y I = sY Capital evolves according to K:+1 = K -8K + (These notations are conventional and as used in the class.) a. Can you express the model in a per-worker form? Answer: [Select] b. Assume that this economy starts with Ko = 16 and No = 4. Assume also that there is no population growth, saving rate s = 0.3 and 8 = 0.05. Fill in the following table as the time progresses for this economy. Time Capital per worker Output per worker Consumption per worker Investment per worker Depreciation per worker Select] Select] Select Select) Select] Select] (Select) Select) Select) Select) [Select] [Select] [Select] [Select] (Select] [Select] [Select] [Select] [Select] Select] c. What are the steady-state values for capital per worker, output per worker, consumption per worker and investment per worker for this economy? Without technological progress, what is the growth rate of output per worker in the long run? Answer: In the long run, K= [Select] growth rate of capital per worker [Select] Y = [Select ] growth rate of output per worker (Select] G = (Select] [Select]