consider the following version of the Romer-model

Yt=At^1/2*Lyt

change in At+1=zAtLat

Lyt+Lat=L

Lat=lL

There is only a single difference with respect to the model seen in the lecture: we have changed the exponent on At in the production of the output good so that there is now a diminishing marginal product to ideas in that sector.

.provide an economic interpretation for each equation, is the growth rate of knowledge in this economy the same as in the standard Romer-model?Or is it not? give an intuitive explanation for your answer.

.which of the three expressions below is the growth rate of output per person in this economy?

a (zlL)^1/2

b(zlL)

c 1/2*zlL

.which of the three expressions below is the level of output per person at each point in time

a Yt=A0^1/2*(1+zlL)^t/2 *(1-l)

b Yt=1/2*A0*(1+zlL)^t *(1-l)

cYt=A0^1/2 *(1+(zlL)^t/2) *(1-l)