Econ Question parts A,B,C

1. [30 pts] Consider the one-country model of technological growth explained in class. Suppose that the fraction of population engaged in R&D is 25%, i.e. YA = 0.25. Suppose also that the total population is L = 100 and the cost of copying is u = 0.25. a. [10 pts] Calculate the growth of GDP pc. b. [10 pts] Calculate the growth of GDP pc. if the amount of workers devoted to R&D suddenly increases to YA = 0.5. c. [10 pts] Use a graph to explain intuitively the effect of this sudden increase in R&D workers (as a fraction of the population) on GDP pc levels