u estion 1 Two economies Rich {R} and Poor {P} are described lay the Soloy.r growth model and they share the same CobbDouglas production function: PHIL] = AKHLl'\" but with different quantities of capital and labour. Economy R's saving rate is 32% while P's is 10%. The population growth rate of R and P is 1% and 3%: respectiyely. Eioth economies share common technological progress at a rate of 2% annually and depreciation at a rate of 5% annually. [a]: Write down the per worker production function it]. [hi Solve the ratio of R's steady state income per worker to P's. [Hint: The parameter a will play a role in your answer] [c] Supposed the CobbDouglas parameter a takes the conventional value of US. How much higher should income per worker he in economy R than in economy P? {d} Income per worker in R is actually 15 times higher than income per worker in P. Can you explain this fact by changing the 1.ralue ofthe parameter a? What must it be? Can you think of any way to justify such a 1.ralue for this parameter? How else might you explain the signicant difference in income between economy R and P