Assume that from 2020 to 2021, Australia's output rose from 4000 to 4500, its capital stock rose from 10,000 to 12,000, and its labor force declined from 2000 to 1750. Suppose aK = 0.3 and aN = 0.7. i. How much did capital contribute to economic growth over the year? (express your answer as a percentage with two decimal places) [1 mark] ii. How much did labor contribute to economic growth over the year? (express your answer as a percentage with two decimal places) [1 mark] iii. How much did productivity contribute to economic growth over the year? (express your answer as a percentage with two decimal places) [1 mark] Assume that there exits two countries (country A and country B) which are identical in every way. However, the only difference is that country A has a much higher capital-labour ratio than country B. According to the Solow model, which country's total output will grow more quickly? Does your answer depend on whether country A or country B is in a steady state? In general terms, how will your answer be affected if the country A and country B are allowed to trade with each other? [3 marks] The following figure shows the contribution of capital growth (red line), labour growth (green line) and productivity growth (blue line) to GDP for the US between 1960 and 2018. -A growth -K cont -L cont 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 Contrast and compare the behaviour of these three variables in the post-1973 (i.e., 1973-2018) to their behaviour in the earlier period (i.e., 1960-1972). Which factor (productivity, capital, or labour) has contributed more to the level of GDP over the entire period and why do you think this is the case? [2 marks]Country A has a capital-labor ratio that is initially twice as big as that of country B, but neither is yet in a steady state. Both countries have the same production function, f(k) = 6k1'12. Country A has a 10% saving rate, 10% population growth rate, and 5% depreciation rate. Country B has a 20% saving rate, 10% population growth rate, and 20% depreciation rate. Calculate the steady-state capital-labor ratio (k) for each country. (Express your answer as an integer with N0 decimal places and show your workings out) [2 marks]