RA '41!) that firms are making decisions about how much effort to allocate to research based on equating wages to the marginal benefit of innovation (e.g. the profits they can earn per innovation times the innovations per researcher), as discussed in the study guide. Think of the process of productivity growth discussed in the Study Guide, with GA = 5 . Assume If a policy change occurs that increases labor share of GDP 5L: and decreases profits share of GDP, 5 H, select all of the following that are consistent with our model. [3 The growth rate of productivity will be temporarily lower than normal as the economy transitions to the new balanced growth path. Cl The ratio RA/Al _ D will be higher in steady state [:1 There is not enough information to tell whether the wage is higher or lower along the balanced growth path. [:1 The ratio of research work to population, R/L, will be permanently lower. Cl The growth rate of productivity will be QR along the balanced growth path 1- D C] The growth rate of GDP per capita will be permanently lower along the balanced growth path. C] There is a permanent decline in the level of productivity along the balanced growth path. [:1 The growth rate of productivity will be permanently higher