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An economy has the following Cobb-Douglas production function: Y = Ka(LE)1-a The economy has a capital...

An economy has the following Cobb-Douglas production function:

Y = Ka(LE)1-a

The economy has a capital share of 1/3, a saving rate of 24 percent, a depreciation rate of 3 percent, a rate of population growth of 2 percent, and a rate of labor-augmenting technological change of 1 percent. It is in steady state.

a. What is the steady-state growth rate in total output?

b.  What is the steady-state growth rate in output per worker?

c.  What is the steady-state growth rate in output per effective worker?

d. Solve for capital per effective worker.

e. Solve for output per effective worker.

f. Solve for the marginal product of capital.

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