QUESTION 7 Suppose the production of a country is Y = KY.(EL).And its depreciation rate is 0.07, population growth rate is 0.02, technology growth rate is 0.01, saving rate is 0.30. Answer the following questions. (a) What is the long-run growth rate of per worker output? (Enter decimals. Numbers only) (b) What is the long-run growth rate of aggregate output? (Enter decimals. Numbers only) (c) (Fill in blanks) If the government want to increase the per-effective-worker consumption permanently, government should (increase/decrease) saving rate to This new saving rate should be decimals. Round up to TWO decimals if needed. QUESTION 8 Consider an economy where population growth is 0, but technology growth is positive and equal to g. Suppose that the population growth rate decreases. (a) What is the direction of change of steady state level of output per effective worker? A. increases (b) What is the effect on the long run level of output per effective worker? B. does not change - (c) What is the effect on the long run growth rate of aggregate output? C. decreases