Steps on how to work it.

2) Natural resources: Suppose an economy in 1which aggregate saving is S: = 5K and the capital stock evolves as K\"; = L. Output is produced using capital, labour, and natural resources N according to Y: = Erectile-\"N?- There is a large xed stock of natural resources N which is depleted at rate d. It follows that Nt+l N: N: = d. The number of workers increases at rate R and lab-our productivity at rate Q. How do natural resources affect the prospects for growth in y; = Yif'Lt? a} Playing 1with exponents! Rewrite output as Y: = Kfzil' where Z; is given by z: = (Aces4 NF" h} Denote the growth rate of Zi by .2. Obtain an equation for how It: = thZi evolves over time starting from any kn. What do you conclude about It: in the longrun?I c} Argue that income per worker y: = KfLi grows at rate 2 n in the longrun. Find 2 n. d} What do you conclude about the role of natural resources for economic growth?I