4. Assume that in an economy with constant technology, the production function is Y = ĀK"}L. -1/3 72/3 (a) If d = .15, A = 2, L = 1, and 5 =.20, calculate the steady state level of capital in this...

Extracted text: 4. Assume that in an economy with constant technology, the production function is Y = ĀK"}L. -1/3 72/3 (a) If d = .15, A = 2, L = 1, and 5 =.20, calculate the steady state level of capital in this economy. (b) If the current level or capital per-person is K=6, calculate the change in capital and output next period (t+1). What is the change in capital and output two periods from now (t+2)? Do your answers make intuitive sense?