PROBLEM:3

a.If we use the following Cobb-Douglas production function = ¹ to measure the sources of economic growth for economy. Derive growth accounting equation or Solow Residuals of the above model.

b.Using per worker production function = ().

i.Derive the steady-state point = ( + ) in the Solow Growth model and show it graphically.

ii.

Consider=6and=0.1, = 0.14, = 0.1. what are the steady state values of capital per worker, output per worker, consumption per worker and investment per worker? Also show that = ( + ) by numerically and graphically both.