Consider an economy described by the production function: Y = F(K,L) =K^0.3L^0.7, where Y is output, K is capital stock and L is the labour force.

a.

What is the per-worker production function?

b.

Assuming no population growth or technological progress, find steady state capital stock per worker, steady-state output per worker, and steady-state consumption per worker as a function of the saving rate and the depreciation rate.

c.

Assuming that the depreciation rate is 10 percent per year. What level of capital stock per worker and saving rate maximize consumption per workers?