Question $1$

A country has the per$-$worker production

function $y_t=6k_t^{\frac{2}{3}},$ where $y_{t}is$ output per

worker and $k_{t}is$ the capital$-$labor ratio. The

depreciation rate $is0\mathrm{.}1$ and the population

growth rate $is0\mathrm{.}1.$ The saving function $is{S}_t=$

$0\mathrm{.}1Y_t,$ where $S_{t}is$ total national saving and $Y_{t}is$

total output.

Use the information above $to$ answer the

following questions. Type out your answers $ina$

separate document and upload $itto$ this

question $as$ a Microsoft Word document $orasa$

$PDF$ document. Please $do$ not upload picture $or$

image files.

$A.$ What $is$ the steady$-$state value $of$ the

capital$-$labor ratio? $(4$ points$)$

$B.$ What $is$ the steady$-$state value $of$ output

per worker? $(3$ points$)$

$C.$ What $is$ the steady$-$state value $of$

consumption per worker? $(3$ points$)$