Help! Been trying to answer this Macroeconomic Question for a long time...?

Question

The rate of depreciation is 12% per year, the population growth rate is 2% per year, and the growth rate of technology is 4% per year.

1. The annual growth rate of "effective labor" in the steady state in this economy is?

2. The level of investment needed to maintain a constant capital stock in this economy is?

3. The level of investment needed to maintain constant capital per effective worker in this economy is?

4. The level of investment needed to maintain constant capital per worker in this economy is?

thanks in advance

Answer 1

I will assume that this supporsed to be Cobb-Douglas production function for Solow model.

1: Growth=n+g =2%+4%= +6%

2: K*12% (just to cover depreciation)

3: n+g+σ =2%+4%+12%= k+18%

4: n+σ =2%+12%=k+14%

n - population growth

g - technology growth

σ - depreciation

K - capital

k - capital per worker