The production function is given by the equation.

a) Determine the dependence of labor productivity (y) on capital-labor ratio (k).

b) Let the capital stock be 40,000 and the population be 10,000. Calculate labor productivity using the original production function obtained in paragraph "a".

c) Let every year 10% of the capital wear out.Growth and technological progress are zero.At what rate of savings (s) will this level of capital-labor ratio be sustainable?What would be a steady level of labor productivity (y) and consumption (c) per capita in this case?

d) Find a stable level of labor productivity and consumption per capita if the savings rate is 0.4, 0.6 and 0.8.Compare the results obtained in paragraphs "b", "c" and "d".Is it always advisable to increase the savings rate?Justify your answer.

E) What should be the savings rate in accordance with the Golden Rule?What is the Golden Rule per capita performance and per capita consumption?Determine the amount of (per working) capital ratio (k);savings (s), retirements of capital (), investments (i) that comply with the Golden Rule?

Illustrate everything.

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) (y) (k).

) 40000 10000. , . .

) 10% . . (s) ? (y) (c) ?

) , 0,4, 0,6 0,8. , . , . ? .

) ? , ? ( ) (k); (s), (), (i), ?

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