Suppose the production function of an economy is given by: Y = AK3/4 L1/4 A. Prove the production function is a homogeneous and follows a constant returns to scale. Interpret the nature of production function.

B. Create a table and find out what are the five equations and five unknowns based on table- that is reported in your text (pp.).

C. Solve these equations to get the solution to the model. Put your solution in the form of a Table and explain the hiring rule of labor and capital based on graph of factor market equilibrium. D. Estimate for the output per person in the long-run. Show it graphically. Explain why it follows diminishing returns to scale. E. Estimate TFP in the long-run, and explain TFP growth is crucial to make differences among countries in terms of per capita GDP. F. Point out the limitation of this model to explain long-run economic growth.