Question: 3. a) Using the production function Y; = AK?/?????, write out the relationship between the growth rate of per capita GDP and the growth rates

 3. a) Using the production function Y; = AK?/?????, write out

3. a) Using the production function Y; = AK?/?????, write out the relationship between the growth rate of per capita GDP and the growth rates of TFP, capital, and population (this is in chapter 3). How are the growth rates of GDP and capital related if productivity and population are both constant? b) Using the capital accumulation equation for the Solow growth model AK +1 = $Y - dk. we derived the expression for the growth rate of capital, K+1 Y Y . KK Make sure you understand how we got this equation. Use this equation to express the growth rate of per capita GDP in terms of (-2) * - = D. 3. a) Using the production function Y; = AK?/?????, write out the relationship between the growth rate of per capita GDP and the growth rates of TFP, capital, and population (this is in chapter 3). How are the growth rates of GDP and capital related if productivity and population are both constant? b) Using the capital accumulation equation for the Solow growth model AK +1 = $Y - dk. we derived the expression for the growth rate of capital, K+1 Y Y . KK Make sure you understand how we got this equation. Use this equation to express the growth rate of per capita GDP in terms of (-2) * - = D

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