What are the levels of income per worker and consumption per worker?

a. Does this produ Show more Country A and country B both have a production function given as Y=K^(1/3)L^(2/3) a. Does this production function have constant returns to scale? Prove why or why not b. What is the per-worker production function c. Assume that neither country experiences technological progress or population growth and that 20 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 30 percent of output each year. Find the steady-state level of capital per worker for each country. Then find the steady state levels of income per worker and consumption per worker d. Suppose that both countries start off with a capital stock per worker of 1. What are the levels of income per worker and consumption per worker? Show less

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