Economic Growth

The production function of a hypothetical closed economy is given by

=10^0.5^0.5

Y=10K0.5N0.5

Where Yis total output, K is capital stock, and N is the workforce. The depreciation rate is 0.3, and the population growth rate is 0.2. National saving is given by

=0.4

where is total national saving and is total output.

1. What are the steady-state values of capital-labor ratio, output per worker, and consumption per worker?
2. Suppose the saving rate in the economy increased to50%
3. 50%.Find the steady-state values of capital-labor ratio, output per worker, and consumption per worker.