1. Using the solow growth model, given y(K) = k^0.4, S=0.20,
depreciation rate=0.04 and n=1%,
a. What is the steady-state level of capital per worker?
b. What is the steady-state of output per worker?
c. What is the steady-state level of consumption per worker?
2. Now assume population growth is instead-0.5% (approximately
the growth rate when every couple has 1.7 children), but that all
other parameters stay the same.
a. What is the new steady-state output per worker? Is it...