help

(Lower case letters denote per capita terms.) Say that a country faces an aggregate production function of y=3k The savings rate is 10%(0.1) and the rate of depreciation is 10%(0.1). There is no technological progress. (a) On one graph (it can be drawn by hand), show the output, break-even investment (depreciation plus population growth), and savings functions for this economy (as a function of capital per worker). Denote the steady state level of capita per worker k. (b) What is the steady state level of capital per worker? Output per worker? (You should be able to find numerical answers for these.) (c) Say that the economy has an initial level of capital per worker of 4 units. Explain in words how the economy works its way toward the steady state