Consider a numerical example using the Solow growth model: Given the production technology as Y=F(K,N)=K^0.5 N^0.5, the capital per worker, k=K/N, evolves by (1+n)k'=szf(k)+(1-d)k. Suppose that d=0.1, s=0.2, n=0 and z=1.

(a) Determine the capital per worker(K/N), income per worker(Y/N), and consumption per worker(C/N) in the steady state.

(b) Suppose that z increases into 2. Determine the new steady state. What happens in the capital per worker(K/N), income per worker(Y/N), and consumption per worker(C/N) and why?

5. Economic Data. Find the following on FRED a. Civilian Unemployment Rate, April 2016, seasonally adjusted b. Civilian Labor Force Participation Rate, April 2016, seasonally adjustedc. Civilian Noninstitutional Population, April 2016 (1. What's the number of unemployed and employed? e. What's the size of labor force