Determine what is the per-worker production function

Reference no: EM13234701

given that Country X and Z both have the production function: Y=F(K,L)=(K.L)^1/2. Assume that neither countries experience population growth or technological progress, while 5% of capital depreciates each year. Moreover, country X saves 10% of output/year while country Z saves 20%/year.
What is the per-worker production function? Using that production function and the steady state condition(investment=depreciation), what is the steady state level of capital per worker, the steady state level of income/worker, and consumption of worker for each country ?

Reference no: EM13234701

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