Problem 3. Consider the AK model that we covered in class, where ignoring labor the aggregate production function is of the form: Yt = AKt K t (1) where Kt is average capital stock in the economy that the firm takes and Kt is the amount of capital used by the firm. Moreover, A is an exogenous technology parameter that is time invariant (constant) and 0 and B are both parameters E (0; 1). a. How do you interpret the parameter B? What does it mean for B to be high or low? Explain......(15 points) b. In the steady-state, Kt = Kt. Provide a necessary condition on 0 and B for economic growth to occur in the steady-state? Explain......