An economy produces a consumption good and also has a research sector which produces new ideas. Time is discrete and indexed by π‘ = 0, 1, 2, β¦
The production function for the consumption good is given by
Ytβ=AtβLytβ where, at time π‘,
Lytβ is the amount of consumption good produced, π΄π‘ is the stock of existing knowledge, and
Lytβ is the amount of labour devoted to production of consumption good. It is known that
A0β=1.
The production function for new ideas is given by
At+1ββAtβ=2501βAtβπΏ_{ππ‘}
where πΏππ‘ is the amount of labour devoted to production of new ideas at time π‘. Suppose that for all π‘,
Latβ = 10 and
Lytβ = 90. Then, the growth rate of the consumption good (
Ytβ) at π‘ = 50 is _____ percent (in integer).