In the baseline year 2020, the economys parameter values are: the number of researchers is 50, the number of production workers is 150, research productivity is given by z=1/2000 and the initial level of knowledge is A0=100. If nothing changes in this economy, what will be income per capita in year 2040? Pick the closest value.

a) The innovation rate will be 5% and per-capita income in 2030 will be $15,000.

b) The innovation rate will be 2.5% and per-capita income in 2030 will be $96.

c) The innovation rate will be 2.5% and per-capita income in 2030 will be $123.

d) The innovation rate will be 5% and per-capita income in 2030 will be $96.

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