Introductory macroeconomics

Questions. 1. Growth Accounting [E marks}. Below are data on the levels of aggregate output [Y] capital {K} the amount oflahour working in production {Ly}, and the population [L] for 20135 and 2011. --- Y Complete the following table. Then, solve for the average annual growth rate of total factor productivity {A} using the production function 11 = Athl'raLfif. To do so, you should derive a growth accounting formula for y = YfL and use the values you have entered in the table. '2. Solace-Swan Model [4 marks]. You will demonstrate the importance ofdiminishing returns to capital in the Solow-Swan model. Draw a Solow-Swan diagram in whid'l there are constant returns to capital. This would happen if the production function were H = AK}. Furthermore, assume that the am of population growth and the depreciation rate is less than the saving rate. Does the economy converge to a steady state in this case? To answer this Ilzplestinn1 you should draw a Solow-Swan diagram in terms of output per person1 as we did in class. Use this diagram to explain why the economy.r converges to a steady state or not