Capital per hour of labor (2000 dollars) Real GDP per hour of labor (2000 dollars)

5 6.10

10 8.70

15 10.71

20 12.20

25 13.70

30 15.00

35 16.20

40 17.30

45 18.40

6.Dismalia is an economy that behaves according to the classical growth model. The country's subsistence real GDP is $15 an hour. The relationship between capital per hour of labor and real GDP per hour of labor are shown in the table above. Initially, the population of Dismalia is constant, and real GDP is at its subsistence level. Then a technological advance increases productivity. (worth 8 marks)

a)What are the initial capital per hour of labor and real GDP per hour of labor?

b)What happens to real GDP per hour of labor immediately following the technological advance?

c)What happens to Dismalia's population following the technological advance?

d)What is the eventual quantity of capital per hour of labor and real GDP per hour of labor in Dismalia?