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Assuming the following Cobb-Douglas production function is given for a closed economy without government. i. Where...

Assuming the following Cobb-Douglas production function is given for a closed economy without government.

i. Where returns to capital = 0.5; and rate of depreciation of physical capital
Determine the steady-state level of capital per worker. What is the savings rate at which the steady-state level of capital is achieved?             [6marks]

ii Prove that the steady-state level of output is the ratio of the saving rate to the rate of depreciation                                                                       [6 marks]

iii. Assuming that , what will be the effect of the savings rate on output per worker? [8 marks]

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