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U I l 10. In the endogenous growth model, suppose that there are three possible uses of time. Let u denote the fraction of time
U I l 10. In the endogenous growth model, suppose that there are three possible uses of time. Let u denote the fraction of time spent working, 5 the fraction of time spent neither working nor accumulating human capital (call this unem- ployment), and 1 u s the fraction of time spent accumulating human capital. Assume that z = 1 and b = 4.2. Also assume that the econ- omy begins period 1 with 100 units of human capital. (a) Suppose that for periods 1, 2, 3, ..., 10, u = .7 and s = 0.05. Calculate aggregate consumption, output, and the quantity of human capital in each of these periods
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