Using one of the two equations below, calculate the growth rate of technology (?A/A) between each pair of years over the sample period using one of the two growth accounting equations below.

1. Using one of the two equations below, calculate the growth rate of tech- nology (AA/A) between each pair of years over the sample period using one of the two growth accounting equations below. Graph the series for the growth rate of technology (AA/A), the growth rate of output AY/Y and the growth rate of labor (AL/L) on the same graph. AA/A = Ayly - WKAk/k AA/A = AY/Y - WKAK/K - (1 -WK)AL/L Hint: (i) Use wk = .36 in the equation above. This amounts to assuming that capital's share is 36 percent of output. Recall homework 1! (ii) If you use the first equation then y = Y/L and k = K/L. (iii) To calculate the growth rate AX/ X in a variable Xt between year t and year t + 1, use the formula Xt+1-X Xt