In a country, output is produced with labor and physical capital. The production function in per-worker terms isy=k1/2. The depreciation rate is 2%. The investment rate () is determined as follows:

=0.2ify10,else=0.4fory> 10

Draw a diagram showing the steady state(s) of this model. Calculate the values of any steady state levels of k and y. Also, indicate on the diagram and describe briefly in words how the levels of y and k behave outside of the steady state. Comment briefly on the stability of the steady state(s)