In the steady state equilibrium, what will be the numerical values of the growth rates of aggregate output, the aggregate capital stock, aggregate investment, and aggregate
savings? What will be the numerical values of the growth rate of output per worker, and capital per worker? What will be the numerical values of the growth rate of
output per effective labor unit and capital per effective labor unit?
What would be the qualitative impact of an increase in s for the steady state level of capital per effective worker and output per effective worker? Show this in a diagram.
What would be the qualitative impact of an increase in s for the steady state growth rates of output, capital, savings and investment? What is the impact of an increase in s for output per worker?
What factors will cause a change the steady state growth rate of this economy? What types of policies would a government have to enact to increase the steady state growth rate of the economy? Would an increase in the steady state growth rate of the
economy increase living standards in the steady state? Explain carefully.
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