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Brazil has the following per-worker production function: y=4k^0.05 Population growth rate is 0.04, depreciation rate is 0.03. S= national saving and Y is national output
Brazil has the following per-worker production function:
y=4k^0.05
Population growth rate is 0.04, depreciation rate is 0.03. S= national saving and Y is national output where S=0.4Y.
- what are the steady state value of output per worker, capital-labour ratio and consumption per worker?
- If national saving increases to 0.5,what are the values of output per worker, capital-labour ratio and consumption per worker?
- If the depreciation rate increases to 0.04,what are the values of output per worker, capital-labour ratio and consumption per worker?
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