a. Express the production function in per worker. b. Assuming closed economy with no government, A = 1, labor growth rate being constant (GL) and depreciation rate is positive 8 > 0, show the step by step derivation of the fundamental equation of growth (using per worker capital, k) c. Find the steady-state values of capital per labor (kss), output per labor (yss) and consumption per labor (Css). Note: Take kss = 0 as given, you don't have to show that it is true.

a. Express the production function in per worker. b. Assuming closed economy with no government, A = 1, labor growth rate being constant (GL) and depreciation rate is positive 8 > 0, show the step by step derivation of the fundamental equation of growth (using per worker capital, k) c. Find the steady-state values of capital per labor (kss), output per labor (yss) and consumption per labor (Css). Note: Take kss = 0 as given, you don't have to show that it is true.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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