Romer model

(a) Consider the Romer model. If the percentage of the population engaged in ideas formation, &, decreases, what are the short- and long-term impacts of this shift? Explain with an appropriate diagram. (b) Refer to the following table on Growth Accounting Growth (%) 1948-2011 1948-1973 1973-1995 1995-2007 2007-2011 KIL 0.9 0.9 0.7 1.1 1.1 Labor Comp 0.2 0.2 0.3 0.2 0.4 TFP 1.4 2.2 0.5 1.5 0.4 If the production function is given by Y = A K1/3 12/3, which period experienced the fastest growth rate of per capita real GDP? Which period experienced the slowest growth rate of per capita real GDP? Which period has the slowest TFP growth, and what might have contributed to this? Explain your answer from the growth accounting perspective