Case II: Solder-Swan Model with Technological Progress The total output is determined by the aggregate production function, a = Knitterq, where04 Let'sassmi>anda>. {c} [3 points] If markets are perfectly competitive and rms maximize their prots, what are the growth rates of real rental price of capital (1') and real wage rate (to) in a steady state, respectively? [Hint r equals total capital income diVided by the capital stock, and w equals total labor income divided by the labor forte] (d) [6 points] Supposed that countries each used the same production technology and differed by initial conditions. Write a. short essay about the characteristics of countries that are approach- ing to the stead}r state relatively faster