Business, 24.03.2021 16:40 JASMINEM6284

Assume an economy has the following production function: Y= F(K, L)-24K^0.25L^0.75. Assume that the savings rate is 0.08, the depreciation rate is 0.06 and the population growth rate in this economy is 0.045. Assume that the rate of technological progress is equal to 0. Required:
a. Calculate the following steady-statevariables. Round your answers to two decimal places.

1. capital per worker.
2. output per worker.
3. investment per worker
4. consumption per worker

b. Suppose the savings rate in this economy increases to 0.09. Graphically illustratethe effect that an increase in the savings rate will have on steady-state level of capital.
c. Suppose the savings rate in this economy increases to 0.09. Assume all other variables are the same as in Part (a). Calculate the following steady-state variables.

1. capital per worker.
2. output per worker.
3. investment per worker
4. consumption per worker

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Assume an economy has the following production function: Y= F(K, L)-24K^0.25L^0.75. Assume that the...

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