2 Now with = w 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 aa=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 oo? . Does this production satisfy the Inada conditions? . What happens as B 07 Explain why sustained growth is possible in this model. . Show that w; = (1 a)A(K;)*(L) if factors are paid their marginal product. Compute the income share of labor (%'tI'-) as a function of the capital stock K; and parameters (A, B, L, a). whk . Define the expression you find above as 5# = s(K;). How does s(K;) behave as Ky oo? Is this consistent with what the data say about the distribution of national income between labor and capital