An economy has the per-worker production function
Yₜ=3kₜ⁰.⁵
where y is output per worker and kₜ is the capital- labor ratio. the depreciation rate is 0.1 and the population growth rate is 0.05. saving is
Sₜ = 0.3 Yₜ,
where Sₜ is total national saving and Yₜ is total output
a. what are the steady -state value of the capital labor ratio, output per worker and consumption per worker?
the rest of the problem shows the effect of chance in the three fundamental determinants of long run living standarts