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The question is as follows: Q.1. Suppose the production function takes the following form: Y = K1/? (LE)1/2 A. What is the output-per-effective-worker, y ?

The question is as follows:

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Q.1. Suppose the production function takes the following form: Y = K1/? (LE)1/2 A. What is the output-per-effective-worker, y ? b Express the steady state capital per-effective-worker (*) in terms of the savings rate s, depreciation rate 6, population growth rate n and the growth rate of labor effectiveness, g. C. If n = 2%, g = 1%, depreciation rate is 4% and the economy saves 30% of its output, what is the steady state level of output-per-effective-worker? d. What are the steady state rates of growth of y, output per worker (Y/L) and the level of output Y? e. At the steady state, is the economy above or below the golden rule level of capital per effective worker

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