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for the part i have highlighted, when it says Y/L, i could see the L getting divided on the right hand side? The question is

for the part i have highlighted, when it says Y/L, i could see the L getting divided on the right hand side?

The question is complete, please try, i ll vote if it helps

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and multiply on both sides by (1 + /) /a, Ka-1 _(7+ 8) (1+/) Since a - 1 is a negative number we invert both sides: ki-= (1 + / ) (7 +8 ) Finally, we raise both sides to the power 1/ (1 - a) we get the steady state level of capital per effective worker: k* = (1 + /) (7 +8) Using the production function and assuming that employment is on its natural level we get an expression for GDP: Y = K" (EN)1- = K EN EN = (k*)" EN = EN. ((1 + /) (7+8) Dividing by L we get GDP per worker in the labour force: L ( 1 + 1 ) ( 7 + 8) E(1 -u), where u is the unemployment rate. Here, we have used the fact that N L-U U L L L - =1-u. We know that the capital share is about 1/3, and setting a = 1/3 the exponent in this expression becomes one half, so we have 1/3 = E(1-u) V ( 1 + /) ( 7+8)

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