Question: (a) Based on production function, Y= K .H .(AL) 1- - , derive the contribution of human capital and physical capital on economic growth and

(a) Based on production function, Y= K .H .(AL) 1- - , derive the contribution of human capital and physical capital on economic growth and show the steady-state level of the economy. (b) Based on question 2(a) explain what would happen if: (i) marginal propensity to consume is increasing and, (ii) the population birth rate decreases.

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