Question
Consider an imaginary country named Solowakia. The data below provides main information about its GDP, population and capital stock. Using the provided data about Solowakia
Consider an imaginary country named Solowakia. The data below
provides main information about its GDP, population and capital stock. Using the provided
data about Solowakia answer the following questions.
(a) Compute growth rates for GDP, population and capital
(b) Graph the growth rate of GDP per capita over time
(c) Suppose that the production function of Solowakia is given as:
Y = K^1/3(AN)^2/3
Compute the Solow residual of Solowakia. Compute the technological progress of
the economy and plot the evolution of technological progress over time. Is Solowakia
innovating? Explain in words.
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