An economy has the per-worker production function
yt =4kt0.5
where yt is output per worker and kt is the capital- labor ratio. The depreciation rate is 0.04, and the population growth rate is 0.02. Saving is
St = 0.15Yt
Please help me to use (or draw) the Solow diagram (i.e., the diagram that shows saving per worker and steady state investment per worker as functions of capital-labor ratio) to show the effect of a technological advancement that improves productivity on the steady state values of capital-labor ratio, output per worker, and consumption per worker.
