1. Derive and then solve for the predicted long-run growth rate of capital per worker and ofoutput per worker as a function of the productivity parameter A.

Consider a closed economy where the production function is given by Y = AH 05K 0-5 for Quebec, which has the following parameters 0! = {102,11 = 0.03,.9 = 25 % and B = 1. The productivity in Quebec is a parameterA whose value you need to determine in the question. Suppose that N is the size of the population/workforce and also that h = % kAII the variables and the parameters are defined as in the lecture notes. The objective of this exercise is to determine whether a change in the productivity parameter A is responsible for narrowing the income gap between Quebec and Canada over time