Question II - Solow Model with Population or Technology Growth Consider the Solow growth model with population growth and technology growth. Suppose that a = 0.1 and that n = 0.02, i.e., At = (1 +0.1) At-1, and It = (1+ 0.02) Lt-1. Output is created by a Cobb-Douglas production function combining Labor, Le, and capital, K, such that output Yt is given by (2) Recall that efficient units of labor are given by Assume that o = 0.1, s = 0.2, and o = 0.3. 1. What is the growth rate of It, i.e., find It - 1 . Lit- 1 2. Recall that capital per-efficient worker k = K/L, varies over time according to (1 - b ) ke + she Use this equation to show that the steady state level of capital per efficient worker is given by KAs = Replace the numbers for s, 6,r and o to find the value of capital per efficient worker in steady state. 3. Use the production function (2) to show that output per efficient worker, yt = Yt/ Lt, is given by Ut = ky . What is output per-efficient worker if capital per-efficient worker is at its steady-state value