(Solved): PLEASE HELP Suppose the production is given by Y=0.5K1/3(AN)2/3. Suppose the depreciation rate ...

PLEASE HELP

Suppose the production is given by $$Y=0.5?K^{1/3}(AN{)}^{2/3}$$. Suppose the depreciation rate is $$2\%$$, number of workers grows at $$2\%$$ per year and rate of technological progress is $$3\%$$ per year. (a) If the saving rate is $$14\%$$ then find the steady state values of capital per unit of effect worker and output per unit of effective worker. (b) Suppose the economy is at steady state with saving rate being equal to $$14\%$$. Now suppose the savings rate increases to $$15\%$$ from $$14\%$$. What will be the capital per unit of effective worker one year after the change in savings rate? Show your calculations for both (a) and (b).