Assume that the aggregate production function is given by: Y =
3square rootK(EL) 2 ( Raised to the power 2)
RAISED TO THE POWER 3
where Y is aggregate output, K is capital, L is number of
workers in the economy and E is the state of technology. Further
assume that capital depreciates at a rate of /delta, the of
technology rate progress is g, the population is growing at a rate
of n and the savings rate is s.
a) Solve for the steady state levels of capital per effective
worker and output per effective worker.
Show transcribed image text VK(EL)