6. Answer the following questions: (a) An economy's production function is defined as Y = AK“L1-a. Find an equation that

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6 Answer The Following Questions A An Economy S Production Function Is Defined As Y Ak L1 A Find An Equation That 1 (52.38 KiB) Viewed 99 times

6. Answer the following questions: (a) An economy's production function is defined as Y = AK“L1-a. Find an equation that shows the contribution of A,K, and L to economic growth (5 marks) (b) Find output per labour in terms of capital per labour if A = 1 and capital's share of output a = 0.25. (5 marks) (c) Find the steady-state capital per labour, output per labour and consumption per labour for part (b) if the saving rate is 20% and depreciation rate is 10%. (5 marks) (d) What is the steady-state consumption per labour? (5 marks)