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1. Consider an economy described by the production function Y=F(K,L).pdf

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1. Consider an economy described by the production function: Y=F(K,L)=K03L07. Assume that =0.10. n=0.02 and s=0.40. A) What is the country's per-worker production function (y)? Show your work. [5 points] B) What are c and y equal to? Show your work and box in your answers. [5 points] C) What are sg,kgg,cg and yg equal to under the golden rule of capital? Show your work and box in your answers. [10 points].

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1. Consider an economy described by the production function: Y=F(K,L)=K03L07. Assume that =0.10. n=0.02 and s=0.40. A) What is the country's per-worker production function (y)? Show your work. [5 points] B) What are c and y equal to? Show your work and box in your answers. [5 points] C) What are sg,kgg,cg and yg equal to under the golden rule of capital? Show your work and box in your answers. [10 points]

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