Question: 3. (15 points) Consider the following statement about the Solow model, y = Air 3. (15 points) Consider the following statement about the Solow model,

3. (15 points) Consider the following statement about the Solow model, y = Air\

3. (15 points) Consider the following statement about the Solow model, y = Ak a, and parameters 0 < a < 1 , 0 < y < 1, and 0 < < 1: Ifthe productivity parameter doubles in size, then long-run output per capita will also double in size. Show that this statement is false.

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