A country has the per-worker production function [ y_{y}=6 k_{t}^{2 / 3} ] where (y_{t}) is output

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A country has the per-worker production function

\[ y_{y}=6 k_{t}^{2 / 3} \]

where $y_{t}$ is output per worker and $k_{t}$ is the capitallabor ratio. The depreciation rate is 0.1 and the population growth rate is 0.1 . The saving function is

\[ S_{t}=0.1 Y_{t} \]

where $S_{t}$ is total national saving and $Y_{t}$ is total output.

a. What is the steady-state value of 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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Macroeconomics

ISBN: 9780134167398

9th Edition

Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore

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Question Posted: Apr 30, 2024 01:00 AM

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A country has the per-worker production function [ y_{y}=6 k_{t}^{2 / 3} ] where (y_{t}) is output

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Macroeconomics

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