(1 ) How do changes in exogenous variables (in this case, we examined G and 1) affect the endogenous variable(s) (in this case, Y.)? (2) What can policy makers do (in this case, G and t are the policy variables) to eliminate the GDP Gap?STEP (3): Solve for the equilibrium value of the endogenous variable; that is, rearrange the equation in Step 2 so that you have Y. by itself on the left-hand side and only exogenous variables on the right.STEP (3): Solve for the equilibrium value of the endogenous variable; that is, rearrange the equation in Step 2 so that you have Y. by itself on the left-hand side and only exogenous variables on the right. This is called a reduced form: it tells you the equilibrium value of the endogenous variable for any set of values for the exogenous variables.The following economic functions have been derived by the Finance Manager of the Kenya Tea Limited: 03 = 3p2 4p and Qb = 24 p2; where p represents price and Q is quantity Requued: a) i) Which of the two functions represents a demand curve, supply curve and why? (4 marks) 1 Constant Population Consider the following production function: Y = F(K N.) = KIN Assume that capital depreciates at rate o and that savings is a constant proportion s of output: St = BY Assume that investment is equal to savings: It = St Finally, assume that the population is constant: NI = Nil = L 1. The production function above expresses output as a function of capital and labor (workers). Derive a function that expresses output per worker as a function of capital per worker (i.e. find y = f(1)). 2. Write down the capital accumulation equation in terms of capital per worker (i.e. an equation with only ke+1, ka, 5, and s. 3. Solve for the steady state level of capital per worker as a function of 6 and s. 4. Solve for the steady state level of output per worker as a function of & and s. 5. What is the steady state growth rate of output per worker? 6. What is the steady state growth rate of output? 2 Growing Population Consider the following production function: Y = F( K., N.) = (K/ + N. )= Assume that capital depreciates 5% each year and that households save 5% of their income. Assume that investment is equal to savings. Finally, assume that the population is growing 15% each year.Problems [uvolvln ne Gene 1. ll}. 11. in cats, long hair is recessive to short hair. A true-breeding {homozygous} short-haired male is mated to a long-haired female. What will their kittens look like? T'wo cats are mated One of the parent cats is long-haired {recessive allele]. The litter which results contains two short-haired and three long-haired kittens. What does the second parent look like, and what is its genotype? Mrs. And Mr. Smith both have widow's peaks {dominant}. Their rst child also has a widow's peak, but their second child doesn't. Mr. Smith accuses Mrs. Smith of being unfaithful to him. ls he necessarily justified? Why or why not? Work the genetics problem predicting the frequencies of the versions of this trait among their prospective children. Mr. and Mrs. Jones have six children. Three of them have attached earlobes {recessive} like their father, and the other three have free earlobes like their mother. What are the genotypes of Mr. and Mrs. Jones and of their numerous offspring? Mr. and Mrs. Anderson both have tightly curled hair. {The hair form gene shows incomplete dominance. There are two alleles, curly and straight. The heterozygote has wavy hair.) The Andersons have a child with wavy hair. Mr. Anderson accuses Mrs. Anderson of being unfaithful to him. Is he necemarily justied? Why or why not? Two wavy haired people {one male and one female] marry and have eight children. Of these eight, how many would you expect to be curly haired, how many wavy haired and how many straight haired, assuming that the family follows the expected statistically predicted pattern? Suppose you examine the actual children and discover that three of the eight have curly hair. What do you suppose went wrong? Basic body color for horses is influenced by several genes, on of which has several different alleles. Two of these allelesthe chestnut {dark brown] allele and a diluting {pale cream] allele {often incorrectly called 'albino'ldisplay incomplete dominance. A horse heterozygous for these two alleles is a palomino {golden body color with flaxen mane and tail]. [s it possible to produce a herd of pure- breeding palomino horses? Why or why not? Work the Punnett's square for mating a palomino to a mlomino and predict the phenotypic ratio among their olfspring. in certain portions of the Jewish population, there is a genetic disease called Tay Sachs disease, which is fatal to infants within the rst five years of life. This disease is caused by a recessive allele of a single gene. Why does this disease persist, even though it is invariably fatal long before the afflicted individual reaches reproductive age? {in other words, why doesn't the allele for Tay Sachs disease s'mply disappear?] About 80% of the human population can taste the chemical phenolthiocarbamide {FTC}, while the other 20% can't. This characteristic is governed by a single gene with two alleles, a tasting allele and a non- tasting allele. What does this statistic tell us about which allele {tasting or non-tasting] is dominant? in fruit flies, the gene for wing shape has an unusual allele called 'curly* {designated 'Cy']. The normal {wild type] allele is designated 'cy.' A fly homozygous for cy {cy cy] has normal, straight wings. The heterozygote {Cy cy] has wings which curl up on the ends {and, incidentally, can't really fly]. The imnozygote for the Cy allele {Cy Cy] never hatches out of the egg. In other words, this allele is lethal in the homozygous condition. If two curly winged flies are mated, and the female lays mo eggs, predict the fillowing, showing appropriate work: a. How many eggs will produce living offspring? b. How many straight winged flies do you expect among the living offspring? c. What percentage of the living offspring do you expect to be curly winged like the parents? b1 cattle, there is an allele called dwarf which, in the heterozygote, produces calves with legs which are shorter than normal. This, again, is a homozygous lethal {the homozygous dwarf calves spontaneously abort early or a stillborn]. [f a dwarf bull is mated to 400 dwarf cows, what phenotypic ratio to you expect among the living offspring