-Explain what would happen to long-run growth if instead theproduction function for ideas is À = A(1 – I)Lº, with 0 < 1 and I, Lconstant. Hint: First calculate the growth rate À/A and sketch it in atime vs. A/A diagram. The Romer model focuses on the production of (non-rival) ideas. Wehave assumed the production function for ideas to be À = A(1 – l)L

The Romer model of economic growth is an influential economic theory that focuses on the role of…

Explain what would happen to long-run growth if instead the production function for ideas is À = A(1 − 1)Lº, with 0 < 1 and l, L constant. Hint: First calculate the growth rate A/A and sketch it in a time vs. A/A diagram.

Explain what would happen to long-run growth if instead the production function for ideas is À = A(1 − 1)Lº, with 0 < 1 and l, L constant. Hint: First calculate the growth rate A/A and sketch it in a time vs. A/A diagram.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Only answer the 2nd MCQ question of the growth rate of output per capita
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Could I have the second questions answered as well: For the production function Y = K1/3L2/3 (a) find the function for output per capita (b) What is the growth rate of per capita for this function in terms of the growth rate of K, gK, and the growth rate of L, n. Thanks!
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