Please answer qu. 1 & 2 Exercise 1 (A Malthusian Economy). Modify Solow model II (with population growth) presentedin lecture 6 as follows. Assume that output is produced with land and labor, instead of capital andlabor. Specifically, suppose that the production technology is of the formY, = TªL-a, where Tdenotes a fixed amount of land, L,denotes labor, and 0 < a < 1 is a parameter. Suppose that thenumber of workers grows at the rate n > 0 per period, that isLe+1= (1 + n)L,. In this economy,there is no physical capital, and output is not storable. In answering the following questions, showyour work.1. What is the growth rate of output.2. Find consumption per worker in period t as a function of L,.3. Find the growth rate of consumption per worker and provide an intuitive explanation offinding.your4. Explain why consumption per worker grows at a different rate than in Solow model II (withpopulation growth) studied in lecture 6.

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Exercise 1 (A Malthusian Economy). Modify Solow model II (with population growth) presented in lecture 6 as follows. Assume that output is produced with land and labor, instead of capital and labor. Specifically, suppose that the production technology is of the formY = TaL-a, where T denotes a fixed amount of land, Ledenotes labor, and 0 < a < 1 is a parameter. Suppose that the number of workers grows at the rate n > 0 per period, that isLt+1= (1 +n)Lt. In this economy, there is no physical capital, and output is not storable. In answering the following questions, show your work. 1. What is the growth rate of output. 2. Find consumption per worker in period t as a function of Lt.