(Long Run) The country of Prosperous has: Production function: Y = 2 K1/2 (AN)1/2, where Y=output;K=capital; A=technology; and N=labor Saving rate (s): 20% per year Depreciation rate (d): 10% per year Labor growth rate (n): 2% per year Rate of technological change (g): 8% per year c. Calculate the growth rate of the following variables when the economy achieves its steady-state: Output per effective worker (Y/AN) Output per worker (Y/N) Output (Y)

The Solow Growth Model is a model that is often used to explain the theoretical relationship between several factors that determine a country's economic growthcountry.(a) Explain what you know about the Solow Growth Model and what are the most important determinants of a country's long-term growth rate?(b) Within the framework of the Solow Growth Model, how does population growth affect a country's economic growth rate?(c) Still within the framework of the Solow Growth Model, how does technological progress affect a country's growth rate?

Consider an economy where the elasticity of output with respect to capital is 0.4 and the elasticity of output with respect to the labor input is 0.6. Assume that the growth rate of output is 3%, the growth rate of capital is 1%, and the growth rate of the labor input is 2%. (a) What is the rate of productivity growth?

Are there key differences between an increase in the capital stock and an improvement in the level of technology?

Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate rate. - Inflation rate – Population growth This equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when calculating this rate. However, the simplified equation is both easy to use and results in small error terms when inflation, nominal GDP growth, and population growth are low, and so it is a useful approximation. The table below lists a fictional country's nominal GDP, real GDP, GDP deflator, and population over two years. Year 2019 2020 Nominal GDP $1,100,000 $1,200,000 GDP deflator 100 102 Real GDP (2019 dollars) $1,100,000 $1,176,471 Population 1,000 1,005 a. Verify that the real GDP values in the above table are accurate. Instructions: Round your answers to one decimal place. b. This country's real GDP per capita for 2019 is $ This country's real GDP per capita for 2020 is $ c. The growth rate in this country's real GDP per capita…