Question: Hiya help with this question will be much appreciated please Question 3: The Long Run [25 marks) a. If policy makers are able to enact
Hiya help with this question will be much appreciated please

Question 3: The Long Run [25 marks) a. If policy makers are able to enact a new policy that improves the growth rate by 1.25% each year, permanently, calculate the total impact of this policy on economic growth after 20 years. I 5 Consider the aggregate production function 1" = KKANF. Calculate output assumingK = 1,000.14 = 3,andN = 9. Assume that the share of labour for an economy is given by a = g, and that the growth of employment is g,B = 0.06, while the growth of capital is g], = 0.03 and 91; = 0.07. Calculate the Solow residual and the rate o'ftechnological progress [95]. Consider the Solow growth model with neither population nor technological change. The aggregate production function is given by Y = KozsNaJ's . Let k denote capital per worker and rewrite the production function in perworker terms. The parameters of the Solow growth model in d. are given by s = 0.2 and 8 = 0.1. Solve for the steady state level o'fcapital stock. Following on from e. Solve for output per worker (y'), consumption per worker(c'), and investment per worker(i'), in the steady state. Following on from d. and e. calculate the \"golden rule" level of capital per worker (kc) and the corresponding savings rate (Sc) for this economy. Consider the Solow growth model with population and technological change. The aggregate production function is given by Y = dim and the parameters are 5 = 0.24, 6 = 0.09, g\" = 0.02, and ya = 0.01. Solve for the capital stock per effective worker and output per effective worker
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