Question 2 [15 points] a) An economy has a CobbDouglas production function: Y = K1f3(LE)2/3. The economy has a saving rate of 45 percent, a depreciation rate of 2 percent, a rate of population growth of 2 percent, and a rate of labouraugmenting technological change of 1 percent. The economy is in steady state. i. t what rates do total output, output per worker, and output per effective worker grow? explain your answer. {3 points) ii. Solve for capital per effective worker, output per effective worker, and the marginal product of capital [3+1+2 = 6 points] 1:!) Now consider a different economy, Macroland. The inial steadystate level of capital per worker in Macroland is 5. The Golden Rule level of capital per worker in Macroland is 8. i. What must change in Macroland to achieve the Golden Rule steady state? 1Why might the Golden Rule steady state he preferred to the initial steady state? (3 points) ii. Why might some current workers in Macroland prefer the initial steady state to the Golden Rule steady state? {3 points]