1)Consider an economy whose production function is: y=k^(1/2) with an investment rate of 50% and depreciation rate of 10%. Then the steady-state levels of output per worker and capital per worker are…. and…….respectively.   5 ; 25   25 ; 5   0.5 ; 0.1   0.1 ; 0.5   2)If the current level of capital per worker is 30, then   The country is at the steady-state   The country is above the steady-state   The country is below the steady-state   We need to calculate the current level of income per worker to know the state of the economy.

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