1. A country has the per-worker production function: y: = 6k2/3 where y, is output per worker and k, is the capital-labor ratio. The depreciation rate is 0.1 and the population growth rate is 0.1. The saving function is S, = 0.1Y, where S, is total national saving and Y, 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? Answer: 2. What happens in the steady state to the capital-labor ratio, output per worker, and consumption per worker when each of the following events occur? You should assume that the steady-state capital-labor ratio is below the Golden Rule level. k y a) Productivity falls b) Population growth falls C) The saving rate falls d) The depreciation rate falls