The Solow Growth Model The Solow growth model is the seminal model of growth theory. The model begins by specifying a macro production function as follows: Y = F(K(t), A(t)L(t)), where K = capital, L = labor, A= total factor productivity (i.e. all the intangibles like technology and skill levels that influence output), t = time. Note that A multiplies L, so the two arguments in the production function are K and AL). The production function is often reduced to its intensive form, y(t) = f (k(t)), where Y(t) K(t) y(t) = and k(t) Alt)L(t)' A(t)L(t) Show that the marginal product of capital, is equal to f'(k). OK' The Solow Growth Model The Solow growth model is the seminal model of growth theory. The model begins by specifying a macro production function as follows: Y = F(K(t), A(t)L(t)), where K = capital, L = labor, A= total factor productivity (i.e. all the intangibles like technology and skill levels that influence output), t = time. Note that A multiplies L, so the two arguments in the production function are K and AL). The production function is often reduced to its intensive form, y(t) = f (k(t)), where Y(t) K(t) y(t) = and k(t) Alt)L(t)' A(t)L(t) Show that the marginal product of capital, is equal to f'(k). OK