2 Now with Solow Model without Inada conditions suppose that the production function is given by: Y: = A(K)*(L:)' " + BK; the same law of motion of capital: K;;; = (1 )K; + sY;. .Set A=B=1,5=02,6=0.05 a=0.3, L; =1. Use Excel to produce a graph of output over time for 200 years, assuming that the capital stock at date 0 is K, = 1. . Does growth get exhausted as in the basic Solow model? . How does the marginal product of capital behave as K oc? . Does this production satisfy the Inada conditions? . What happens as B 07 Explain why sustained growth is possible in this model. . Show that wy = (1 a)A(K;)*(L) if factors are paid their marginal product. Compute the income share of labor (5'%] as a function of the capital stock K; and parameters (A4, B, L, a). wh . Define the expression you find above as %# = s(K;). How does s(;) behave as Ky ~c? Is this consistent with what the data say about the distribution of national income between labor and capital