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The production function in an economy is given by Y = K0.3L0.7, where Y is output level, K is capital input, and L is labour
The production function in an economy is given by Y = K0.3L0.7, where Y is output level, K is capital input, and L is labour input. The saving rate is 28%, the annual population growth rate is 5%, and annual depreciation rate is 2%. Determine the steady-state values for per capita capital stock, per capita output level, and per capita consumption level for this economy.
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