You have been appointed as a senior advisor of the Finance Minister. You are requested to give a presentation about Australian economic growth using the Cobb-Douglas production function that you learned in your ECON2102 class (Production Model). 13 Y=AK3L3 Further, assume the assumptions made in lecture I hold. Answer the following questions: 3) Provide an interpretation for the exponent of the labour input. b) Find expressions for the marginal product of capital (MPK) and labour [MPL) in this economy. Would you say the assumption of diminishing return to inputs is satised? Why? (you can add a plot if you want) c) Derive the demand for capital om a typical rm in this economy. What can you say about the supply of capital in the simple model of production? (I) Now, suppose there is a sudden increase in the supply of capital in this economy ('ie, an exogenous change in the level of capital). What do you expect to happen to the real rental rate and the real wage in this economy? Provide both mathematical and graphical explanations and economic intuition