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Define output per worker yt, capital per worker kt, and consumption per worker ct as follows: yt Yt/Lt, kt Kt/Lt, ct Ct/Lt. (a) Please write
Define output per worker yt, capital per worker kt, and consumption per worker ct as follows: yt Yt/Lt, kt Kt/Lt, ct Ct/Lt. (a) Please write the capital accumulation equation and derive the per worker form of capital accumulation. (The production function is Cobb-Douglas.) (b) Use the per worker form of capital accumulation to derive the steady state levels of capital per worker, output per worker and consumption per worker. (c) Can growth in the labor force lead to overall economic growth in the aggregate? If it can, what is the growth rate in the steady state? (d) Can growth in the labor force lead to growth in output per person? If it can, what is the growth rate in the steady state
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