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2. (Labor augmenting Technology Growth) Let's analyze the Solow growth model for per effective worker variables. Dene per eective worker variable as follows. 0 g}

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2. (Labor augmenting Technology Growth) Let's analyze the Solow growth model for per effective worker variables. Dene per eective worker variable as follows. 0 g} = % output per effective worker a k : % capital per eEective worker a f: i investment per effective worker .. _ C . . o c _ E consumption per effective worker Given this notation and the production function Y : K\"(EL)1_\" answer the following ques- tions. Depreciation rate of capital 5, population growth 79., and technology growth 9 is all positive. (a) What is the per effective production function? (b) Derive the per effective worker capital accumulation equation. (c) Solve for the steady state values of capital per effective worker lai and steady state output per effective worker, f. (d) Suppose there is an increase in the growth rate of technological progress from 91

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