Following the report you have prepared for the Treasury, one of the comments you received is that you are not allowing technology to growth over time, so you have decided to prepare a new report allowing for that possibility. You can assume that the growth level of technology is g > 0, and continue making the same assumptions on population growth you made before. When these assumptions are made, the capital accumulation equation (in per effective labour terms] assumes the following format: Ale: 2 3y; (n + g + 6M3, where s is the savings rate and 5 is the capital depreciation rate. kt : Kg/ (AtLt) and yt : Yt/ (A3113). In your report you need to answer the following questions: 1. Find the steady-state level of income per capita assuming the production function follows the standard Cobb- Douglas production function. Show your work, stepbystep. 2. In 2020, Australia had a GDP per capita level of around $48,679 while Algeria's was about $10,735. Using the result you found in (1), give two reasons that could explain why this dilference exists. 3. Ceteris paribus, what happens to the level of income per capita at the steady state when 11 increases. Explain why (intuitively) using 12 sentences