3. This question refers to the Cobb-Douglas production function, with a = 0.3: Y = AK*N1-a Doubling the employment to population ratio would double GDP per capita but doubling the capital/labor ratio increases GDP per capita by less than a factor of 2. 4. [The first 2 statements are true] The country of Florin devotes 3% (z = 0.03) of its GDP to research and development, while the neighboring country of Guilder devotes 1%. Florin's GDP per capita is currently 20% of Guilder's. According to the R&D-based model of productivity growth, Florin's income per capita will eventually exceed Guilder's