Question: Help finding the solution Suppose that the economy's production function is Y = VK ** VNA and the saving rate(s) is equal to 16% and

Help finding the solution

Help finding the solution Suppose that the economy's production function is Y

Suppose that the economy's production function is Y = VK ** VNA and the saving rate(s) is equal to 16% and the depreciation rate is 10%. Further suppose that the number of workers grows at 2% per year and the rate of technological progress is 4% per year. a) Find the steady state values of the capital stock per effective worker, output per effective worker, growth rate of output per worker and growth rate of output. b) What happens to your answers in question (a) if the rate of technological progress doubles to 8% per year. Explain

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