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Question: If the per-worker production function is given by y = k^1/2, the saving rate (s) is 0.2, and the?
depreciation rate is 0.1, then the steady-state ratio of capital to labour is?  Edit

Answer: The formula for steady state ratio is
s= dk

s= 0.2y=0.2k^1/2
d=0.1
Hence, 0.2k^1/2=0.1k
or, 2k^1/2= k
or, k= 4
  Edit


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