The economy of Alpha can be described by the Solow growth model. The following are some characteristics of the Alpha economy:

saving rate (s)

0.20

depreciation rate ()

0.12

steady-state capital per worker (k)

4

population growth rate (n)

0.02

steady-state output per worker

20,000

a.

What is the steady-state growth rate of output per worker in Alpha?

b.

What is the steady-state growth rate of total output in Alpha?

c.

What is the level of steady-state consumption per worker in Alpha?

d.

What is the steady-state level of investment per worker in Alpha?