Assume that the production function is given by

3. Assume that the production function is given by Y = AF(K, Lu, Ls) where Lu denotes input of unskilled labor and L, denotes input of skilled labor. Proceed analogously to how we obtained the Solow residual in class. But, you should be using implicit differentiation this time. It will be helpful if you use the following two variables: Sy = LuFI F(K, Lu, Ls) WL and Ss = LsFL, F(K, Lu, Ls) WL where w is the wage rate and L = Lu + Ly. Assume that the economy is cha- racterized by the constant returns to scale, so that the share of the capital and labor are, respectively given by O = AKFK(K, Lu, Ls) AF(K, Lu, Ls) and 1 -