Given a country's output function Y=AN^1/2K^1/2, saving ratio is 0.6, population grows at 4%; depreciation rate 6%, A=1.

a) Find steady-state values of income, capital and consumption at per capita level.

b) Find the golden rule capital level, income and consumption.

1. Determine what saving rate would yield the golden-rule level of capital?

c) Does a high per capita income level necessarily mean a higher welfare level?

d) If A is increasing at a rate of 3% per year (g=0.02), at what rate is per capita output growing at the steady state? At what rate is total output growing?