This is a question for the Romer model of innovation.

The East Island and the West Island are the only countries in the world of Oceania. The two islands are so far away that they are not in contact, so ideas do not spread from island to the next and you may consider them in isolation.

2a. We have some economic data from the East Island. Population Lbar = 1000; Lyt = 900; Lat = 100. These numbers are constant over time. Suppose that real GDP in 1965 (Y1965) was 5472 and real GDP in 2015 (Y2015) was Y = 9000.

Find the average growth rate of real GDP.