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Section 2. Short-a nswer questions {10 points] Let us consider economic growth in a Solow model. The total output [denoted by Y] is modelled by

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Section 2. Short-a nswer questions {10 points] Let us consider economic growth in a Solow model. The total output [denoted by Y] is modelled by the following production function f(): Y= KJ-E) where K denotes the total stock of capital [excluding human capital], and LE the total stock of effective labour. The latter quantity is modelled as the product of the total stock of nominal labour {denoted by L} and the level of labouraugmenting technology [denoted by A], that is, L5 = LA. By dividing every term in the displayed equation by the total stock of effective labour, we obtain 3'5 = fats) where 3.15 denotes the output per effective labour, and k5 the stock of capital per effective labour. Let us assume that the model contains four exogenous parameters: the saving rate (denoted by S), the rate of capitalstock depreciation (d), the populationgrowth rate {11}, and the rate of labou r augmenting technological progress [a]. (2.1 Which expression correctly represents the saving per effective labour? Cross one box. [1 point] a. smol b. Sm) I E- Sks) d. sf(K,LA) (d + n + (1)}:5

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