We consider endogenous growth without scale effect. The model setting is the same as Romer $(1990)$ done in class except two points. First, population grows at the rate of n $.$ Second, knowledge production follows $\backslash$Delta A$\_($t$)=$ u L$\_($At$)$A$\_($t$)^(),$in$(0,1)$ where $$stands for the fishing$-$out effect, i$.$e$.,$ it is getting more difficult to come up wit a new idea after a lot of ideas have been already created. $($see Jones $(1995).)($a$)$ Derive the value of technology, q $,$ on a balanced growth path. $($b$)$ What is the growth rate of per$-$capita output? $($c$)$ Consider a policy such that it leads to more employment in the research sector $($e$.$g$.$ R D subsidy$).$ Do yo think that such a policy stimulates economic growth in the long run? Explain.