The Mankiw-Romer- Weil (1992) model and Lucas (1988). The production function of a hypothetical economy is assumed to have the Cobb-Douglas form and is given by. Y=K^alfa (HL)^1-alfa

-How do individuals in this economy accumulate human capital? Write down the function for human capital and explain it.

-How do the individuals decide how much time to spend accumulating skills instead of working?

-Solve the model and find the steady state values of capital stock per effective worker, output per effective worker, and output per worker.

-What are the growth rates of the "state variables" along the balanced growth path?