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Assuming no technological progress but population and efficiency of labor growth per period at rates, n...

Assuming no technological progress but population and efficiency of labor growth per period at rates, n and g respectively. Given the Cobb-Douglas production function:

Y equals K to the power of alpha open parentheses E L close parentheses to the power of 1 minus alpha end exponent

a. Characterize the steady-state capital per effective worker

b. Characterize the steady-state output per effective worker

c. Determine a. and b. when a = .3

; delta space equals space 0.03 ; n equals 0.02 ;  g equals 0.01  and s equals 0.24 .

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Answer #1

@ Y = X 1 ** (LE)!-( = K (LE) * = kx (LEY CL LE be E) In steady state sy- (stn+g) k =0 sy = (stn+g)R s(R2Q = (S+n+7) R.stntg Re stntg S 70 st ntg (6) y = stntg GC Stnrg x= 0.3 n = S = g: s= 0.02 0.03 0.01 0.24 stntg 1-0.3 0.24 0.03 +0.02 +0.01R= 0:29) 4. 251 = * 0.3 | نه 8: | | | مه |عے ل والية

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