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please refer to the attached picture. I already have the answer but I do not know how to do it. Question 2 (10 points) Consider
please refer to the attached picture. I already have the answer but I do not know how to do it.
Question 2 (10 points) Consider an economy described by the production function: Y = F(K, EL) = 3K1/3(EL) 213. a) Find the steady-state capital per effective worker and output per effective worker if t depreciation rate is 7%, the population growth rate is 5%, the growth rate of efficiency worker is 3%, and the saving rate is 20%. (4 points) b) Redo part (a) if the production function becomes Y = F(K, EL) = 12K1/(EL)23. (2 points) c) Explain your results in parts (a) and (b) in words and an appropriate diagram (4 points).Step by Step Solution
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