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.

1. Graph the scatter plot of (Kt/Lt, Yt/LtAt). Make sure that the capital-labor ratio K/L is on the horizontal axis of the scatter plot. Note that this dataset has as many points as the number of years in the data set.

• data can be found in this link: https://docs.google.com/spreadsheets/d/1Qjms1MR1XRxQe5JlCNEb6k_ccZxcqDVM/edit#gid=1431757545

3. Graph the scatter plot of (Kt/Lt, Yt/LtAt). Make sure that the capital- labor ratio K / L is on the horizontal axis of the scatter plot. Note that this data set has as many points as the number of years in the data set