Country A and country B both have the production function.

=(,)=1/21/2

Assume that neither country experiences population growth or technological progress and that 4 percent of capital depreciates each year. Assume further that country A saves 14 percent of output each year and country B saves 26 percent of output each year. Using your answer from part b and the steady-state condition that investment equals depreciation, find the steady-state level of capital per worker ()(k), income per worker ()(y), and consumption per worker ()(c) for each country.

For Country A

For Country B

k for Country A:

k for Country B:

y for Country A:

y for Country B:

c for Country A:

c for Country B: