Suppose that the production function is given by = 0.4^0,7 ^0,3.Assume that the size of the

population, the labour participation rate and the unemployment rate are all constant.

1.)Explain the effect of an increase in the saving rate on economic growth

2) What is the effect of an increase in capital per worker on output per worker? Explain with the aid of a diagram.

3) What is the effect of technological progress on output per worker? Explain with the aid of a diagram.