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G recess Cours Search 5 M x _ my.m M ECS27 Launcasht Unit:/ AZA3 AZA2 ECS27 ECS21 0 (3) Yo N Netfli Launc + X C D @ File | C:/Users/pauli/OneDrive/Documents/First%20semester/Intermediate%20macro/Assignment-20200409/ECS2730%202020_%20Semester%20Test%20Ques... i Apps Economics MA, Uni... 3 XIZ Survey Remover @ @ Stormlikes - Buy R. Convert MP3 to Yo... The Truth About Bu.. t Canon 2000D 24M... A contribution margi.. Monash University 5/5 IIE IVISA QUESTION 3 (MARKS: 25) According to the growth accounting equation, gy = gA + agk + (1 -a)gh wheregy, Jk and gh. are growth rates of GDP per capita, capital per worker, and human capital per worker, and o is the share of capital income in total GDP. The first four columns of the following table give values for gy Jk . In and a By gk gh Growth Growth IF TFP attributable attributable growth share in to Physical to Human growth capital capital 5. 4.0 2.0 0.3 5.2 4.0 3.0 0.3 5.2 4.0 2.0 0.4 Q.3.1 Fill in the fifth column of the table with the growth attributed to physical. {4.5 Marks} Q.3.2 Fill in the sixth column of the Table with human capital accumulation. {4.5 Marks} Q.3.3 Fill in the seventh column of the Table with TFP growth. {4.5 Marks; Q.3.4 Fill in the final column of the table by calculating the fraction of overall growth (g,) that is attributed to TFP by the growth accounting framework. {4.5 Marks} Q.3.5 Using your calculations above discuss the potential for inaccurate estimates of go and a to render + misleading estimates of the importance of TFP growth. {7 Marks} QUESTION 4 (MARKS: 10) Q.4.1 How does the Romer model of economic growth exploit the concept of nonrivalty? (5 Marks} em B. W R A #() GENG 19:40 199+ P 2020/05/22 40