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Question 3.[20pt] Consider an economy with the following production function: h) Y = I'd/BN2 s = 0.40 5:0.1 What is the relationship between output per

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Question 3.[20pt] Consider an economy with the following production function: h) Y = I'd/BN2\" s = 0.40 5:0.1 What is the relationship between output per worker 1'} /Ni and capital per worker yrs/N:- Derive the steady state capital and output per worker of this economy. Within the connements of this model, how could steady state output per worker be increased? What are the income shares wL/ Y and HK/ Y of this economy. How do they change once the economy reaches the steady state? What would he the saving rate 39\" that maximizes consumption in the long run? Tip: Calculate the level of capital per worker (WW) that maximizes consumption rst

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