(solution) Consider an endogenous growth model where the quality of workers

(solution) Consider an endogenous growth model where the quality of workers

 Consider an endogenous growth model where the quality of workers increases at a rate g(????)=????? where u is the share of the population working at research universities. Suppose that the total amount of workers (= to the population) is L=1. Suppose that the production function for manufactures is ????=????^(1/3)((1?????)????)^(2/3), where (1?????) is the number of workers employed in manufacturing. 

4) [20 pt] Suppose that the share of workers in research is fixed at 2.5%. What is the growth rate of total output in this economy? 

5) [10pt] Suppose that the share of workers in research is now 81%. What is the growth rate of total output in this economy? 

6) [10pt] Explain your results in question 4 and 5.