Question: 1. Suppose that the production function is given by a. Derive the steady state levels of capital per worker and output per worker in terms


1. Suppose that the production function is given by a. Derive the steady state levels of capital per worker and output per worker in terms of the saving rate {5} and the depreciation rate {a}. b. Derive the equation for steadystate output per worker and steadystate consumption per worker in terms of s and E. c. Suppose that E- = 5% [=D.-5). lCalculate the steadystate levels output per worker and the steadystate level of consumption per worker as afunction of the saving rate. Show these relationships on a diagram (you can use Excel to do this}. e. What is the golden rule level of capital per worker? What is the saving rate associate with it? t. What saving rate maximizes steady:' state level of output per worker
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