Solve for annual capital stock depreciaton, dk
d=0,10
dk=0.10k
Step 4:
Steady state solution: change in capital per worker (or capital ratio) is zero,Â
0= 0.40 k^2/3- 0.10k
0.40 k^2/3=0.10k
4= Â k^2/3
K = 2.22 (capital per worker)
y== 4 (output per worker)
i= 0.40=0.40 x 2.2 = 0.88 (investment per worker)
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