Consider the following production function: Y=K^.5 (AN)^.5, where both
the population and the pool of labor are growing at a rate n=.07, the
capital stock is depreciating at a rate d=.03, and A is normalized to
1
a. what are capital's and labor's share of income?
b. what is the form of this production function?
c. find the steady-state values of k and y when s=.20
d. at what rate is per capita output growing at the steady state? At
what rate is total output growing? What if total factor productivity
is increasing at a rate of 2 percent year (g=.02)