Let s be the savings rate delta the depreciation rate and


Let s be the savings rate, δ the depreciation rate and the production function be: y = Aka. If the share of labor is 2/3, calculate the steady-state value of k for each of the following: the product function is in per capita terms

a. s =10%, δ =10%, A=1

b. s =10%, δ =20%, A=1

c. s =20%, δ =10%, A=2

Explain what the meaning of this steady state is

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Business Economics: Let s be the savings rate delta the depreciation rate and
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