In this homework we will redo what Solow (1957) did long ago. The key

difference is that while Solow considered US data from 1909- 1949, we will focus

on US data over the period 1948-2015. The data for this homework are in the

file hwk3-data.xls. It contains aggregate measures of output, capital and labor

for the US economy.

Output (Y )- real GDP.

Capital (K)- real net stock of private fixed assets.

Hours (L)- total hours of all persons in the non-farm business sector.

2. Set A1948 = 1.0. Calculate the At series using At+1 = At(1.0 + ?A/A),

where ?A/A is the growth rate of the technology calculated between year t and

t + 1. Graph the At series.

Data for this question is in this link: https://docs.google.com/spreadsheets/d/1Qjms1MR1XRxQe5JlCNEb6k_ccZxcqDVM/edit#gid=1431757545

2. Set A1948 = 1.0. Calculate the At series using At+1 = At(1.0 + AA/A), where A A/A is the growth rate of the technology calculated between year t and t + 1. Graph the At series