Please explain thoroughly.

QUESTION 5 In this problem you are going to think about policies that could help get income per worker to grow faster in the U.S. In order to do that effectively you need to remember the expression for the growth rate ofy in the Romer model. What is it? Ok, keep that in mind. The typical American in the labor force works for about 1000 hours per year and there are about 150 million Americans in the labor force. About 30% of that time is dedicated to research and development, broadly construed, and the real GDP per worker has grown at about 2% each year for the past two decades. Based on the paragraph above you can nd a value for Z in our Romer model that is consistent with the data. This is called calibrati ng the model. Measure all the L variables in units of billions of hours of work. 1 What is the value of ;? (z is tiny, so 1/2 should be big. You can interpret 1/2 as the number of hours of R&D that it takes to increase TFP by 100%.) QUESTION 6 (continued from last question) President Biden wants to get real GDP per capita growth up to 4% per year. How big would a need to be in our calibrated model to achieve that target? (not to turn in: do you think that is a reasonable target?)