Question: You are given a production function : Y = 8 K 3/6 L 2/4 . Depreciation is 40 percent annually. Find the Golden Rule steady

You are given a production function : Y = 8 K3/6 L2/4.

Depreciation is 40 percent annually.

Find the Golden Rule steady state capital per worker. What is the savings rate to produces the Golden Rule steady state?

Per worker production function for country A: y = 8k1/2

Calculate income per worker, consumption per worker, and investment per worker at the Golden Rule steady-state.

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