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Imagine the imaginary economy of the United People's Republic of Chakalakastan has the following characteristics: Alpha: ( = 0.75 Savings Rate: s = 0.42 Population
Imagine the imaginary economy of the United People's Republic of Chakalakastan has the following characteristics: Alpha: ( = 0.75 Savings Rate: s = 0.42 Population Growth Rate: n = 0.025 Depreciation Rate: 6 = 0.075 Technology Growth Rate: g = 0.085 Level of Technology: An = 1.2 a) (i) Write down the per-capita production function & the (ii) per-capita law of motion of capital (2 points each) b) (i) Calculate the Steady State Capital Stock, (ii) Steady State Income, and (iii) Steady State Consumption (2 points each). You must show your work. Collect the final results of your calculations in a table like the one below. Per-Capita Production Function Law of Motion of Capital per Capita Steady State Capital Stock Steady State Income Steady State Consumption
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