Consider the Romer economy with the following parameter values: initial knowledge level A0=10, 3% of the workforce is employed in research sector, research productivity is z=1/2,000 and the workforce equals 1,000.

Compute the innovation rate (g), also known as the annual growth rate of knowledge. Pick the closest value.

3.7%

1.5%

4.3%

3%

Compute per-capita GDP in year 10 (that is, 10 years later). Pick the closest value.

681

11,260

43

11