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l. A country has the perworker production function: 23 EEZEEBI where y: is output per worker and kc is the capital-labor ratio. The depreciation rate is ll and the population growth rate is UL]. 'Ihe saving function is s: = nan where 5: 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 steadystate value of consumption per worker? 2. 1iWhat happens in the steady state to the capitallabor ratio: output per worker: and consumption per worker when each of the following events occur? You should assume that the steady-state capital-lab or ratio is below the Golden Rule level. _III WW III _III _III IIII 3. Country A has a capital-labor ratio that is initially twice as big as that of country E:= but neither is yet in a steady state. Both countries have the same production function: Ho = e We Country A has a 19% saving rate= 10% population growth rate= and 5% depreciation rate: while country B has a 23% saving rate: 13% population growth rate= and 20% depreciation rate. a) Calculate the steady-state capital-labor ratio for each country. Does the initial capitallabor ratio affect your results? h) Calculate output per worker and consumption per worker for each country. W'hich country has the highest output per worker? The highest consumption per worker