Question: I want the FULL ANSWER please. Question 4 Consider a n economy where the population o f country i N i , t grows a
I want the FULL ANSWER please.
Question
Consider economy where the population country grows the constant rate :
Output a linear function aggregate productivity and population :
The productivity country i evolves according :
with which reflects the notions that a larger population generates more produc
tive ideas productivity growth increasing population and that existing ideas beget new
ideas productivity growth increasing current productivity
Characterize the longrun growth rate productivity a country i first for the case
and then for the case
Consider two countries iin the model under the parameter restrictions
period country has twice many people country but only
a quarter the productivity, The population growth rates the countries are
identical, How the growth rates productivity the two countries compare
the initial period period How the growth rates compare the long run
the balanced growth path How the levels productivity compare the long run?
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