Problem 4. For the next two questions, we'll consider a new economy with a per-worker production function y = f(k) = k 1/2 .This economy has s=0.24, population growth of 1 %, capital depreciation of 4 %, and increases in technology of 2% (all are in annual terms).

a) Calculate the steady state level per-worker, k.

b) Calculate steady-state level of putput per-worker, y.