Question: Question 2: Endogenous Growth . .... . . 10 points (a) (4 points) Calculate the growth rate in the Romer model for the following values:

Question 2: Endogenous Growth . .... . . 10 points (a) (4 points) Calculate the growth rate in the Romer model for the following values: Ao = 100,1 = 0.02, Z = 1500, L = 500. (b) (4 points) Suppose I increases to 0.04, what is the new long run growth rate? (c) (2 points) What happens to output per worker in the short run (provide a qualitative answer)

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