Y=K+AN
capital depreciates at rate δ
savings is a constant proportion of 's' of income, assume δ>s
1. what is the steady state level of capital per effective worker?
2. if A grows at rate Ga, and N grows at rate Gn, what is the steady state level of capital per effective worker?
3. what are the steady-state growth rates in terms of (Ga + Gn) of: capital per worker, output per worker, and capital?
4. when A and N keep growing, what happens to steady state level of output per effective worker? steady state level of output if δ increases? use graph to explain