D) Based on the following equation Y(t) = A(t)(1-a_L)L_t,

(i) explain the importance of knowlege. (5 marks)

(ii) Explain the state of economy if aL=0 and aL=1, (10 marks)

(iii) In the case of Malaysia, assumed that aL = 10%, explain what is the major source of the economic growth (Y) (5 marks)

(iv) Explain what is means by this equation, g_A(t) = g_A(t) + (-1)[ (g_A)]²? (5 marks)

(vi) Explain whould happen to the economic growth if < 1. (5 marks)

(E) Based on Romer model, i.e model with capital and knowledge, explain what would happen to the growth of technology if + > 1 and + < 1. (10 Marks)