A Country Has the Per-Worker Production Function

question 74

Essay

A country has the per-worker production function
y_t = 5,
where y_t is output per worker and k_t is the capital-labor ratio.The depreciation rate is 0.2 and the population growth rate is 0.05.The saving function is
S_t = 0.2Y_t,
where S_t is total national saving and Y_t is total output.
(a)What is the steady-state value of the capital-labor ratio?
(b)What is the steady-state value of output per worker?
(c)What is the steady-state value of consumption per worker?

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Definitions:

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An interest recognized and protected by law, such as property rights or personal rights, safeguarding individuals or entities.

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A legal claim or lawsuit instituted based on negligence where the plaintiff must prove that the defendant owed a duty of care, breached that duty, and caused damage as a result.

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A legal doctrine that means "the thing speaks for itself," used in tort law to infer negligence from the very nature of an accident or injury in the absence of direct evidence on how any defendant behaved.

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