Can you help me understand how the ga= gy from the romer model in the following material: Derive the growth rate of the stock of ideas in terms of the parameters of the model. Answer: We can substute Lat out of the equation for the accumulation of ideas: gA = zLat = zlL . Question 2.3 Show that the growth rate of output is equal to the growth rate of ideas. Answer First notice that we can write Lyt = L Lat = L lL =(1 l)(L) and therefore Yt = At(1 l)L From here, we can conduct the standard growth rate calculation to show that: gy = ga (growth rates)