Homework Answers
Per worker production function is y = 4k^0.5
Steady state capital labor ratio or capital per woker is kss
kss/yss = s/d +n
k/ 4k^0.5 = 0.09/(0.07 + 0.12)
k^0.5 = (0.09*4)/(0.07 + 0.12)
k = 3.59
This is the required value
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