Question 3: Endogenous Growth Theory .................................................... 10 points . Consider the Romer model of endogenous growth, where y: = At(1 l_) (1) AAt+1 :- =
Question 3: Endogenous Growth Theory .................................................... 10 points . Consider the Romer model of endogenous growth, where y: = At(1 l_) (1) AAt+1 :- = [L 2 At 2 ( ) (i) (5 points) Calculate the growth rate of output per capita for the following values: A0 = 100, l = __ 1 _ 0.1,2 m,L 1000 (ii) (5 points) Using the information from year 1, what is the level of per capita output in this economy in year 5
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