Problem Set #3 Econ 202 - Spring 2018 1. 2. Write down the law of motion for human capital. As we did in class, divide all requisite variables by \"effective labor\" AtLt to get the intensive form versions of human capital, physical capital, output, and consumption. Denote these intensive form versions with lower case letters ht, kt, yt, ct. . Solve for the steady state values of the intensive forms of physical and human capital in terms of model parameters (6, (1,6, 5K, 5H,n,g). . Will physical and human capital both converge to these steady state values in the long run? Why? A picture or two might be helpful here. . Discuss the comparative statics of the model. Does steady state human capital increase in SK, 857,5,11, and/or 9? Please give a brief intuitive explanation for each. . What are the sources of long run growth in output per capita in this model