Question: please help me with this. 1] Suppose Solow's production function is given as H = EKfLIIa and assume that or = %: [25 marks] a}
please help me with this.
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1] Suppose Solow's production function is given as H = EKfLIIa and assume that or = %: [25 marks] a} Find the steady state level of output [1") using the equations below. [10 marks]: $.55,\" = I 3K: [1] L. = I {s} U: + I: = Y: [3) It = EH (4] h) Express the steady state level of output in per worker [per capita} terms {y'}. Ehpiotrt the eoonmnic meaning of the steady state output per worker. {5 marks] c} Using Solow's diagram. show: and atho-irt what happens to the steady state output per worker when there is a decrease in the depreciation rate. [10 marks]: 2} Consider the following Homer's model of economic growth, Y; = ALL\"; [25 marks] a] Find the steady state level of output per worker (13} using the equations below. Esplotn the economic owning of the steady state output per worker. [10 marks]: saw = EAL\": [1} L3: + La; {3} .r... = E (3} a: = (1 at (4} h) Amumezn = III}, E = ELLE: 1f3, f= 1mm: i) What is the growth rate of knowledge {g} in this economy? {Answer to three decimot pisses}. {5 marks} ii) 'What is the steady state level of output per worker in year 5'? {Answer to two decimal places). {5 marks} c} Use a diagram to show and explain what happens to output per worker when there is a decrease in the share of population engaged in research. {5 marks}
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