Consider a Solow growth model with the following production function: y = k^1/2, where y is output per worker and k is capital per worker.Assume that the constant fraction of output invested is 20%, and thedepreciation rate is 10%, the population growth rate is 2%.

1) Ifk = 400, what is output, y?

2) If k = 400, whatis the level of investment per worker?

3) If k = 400,what is the level of break-even investment per worker?

4) If k=400, is the economy at, above, or below its steady-state? Show how you know it.

5) What are the steady-state levels of capital and output per worker for this economy?