Based on the following equation Y(t) = A(t)(1-aL)Lt, (i) explain the importance of knowlege.
(ii) Explain the state of economy if aL=0 and aL=1,
(iii) In the case of Malaysia, assumed that aL = 10%, explain what is the major source of the economic growth (Y)
(iv) Explain what is means by this equation, gA(t) = ƴηgA(t) + (θ-1)[ (gA)]2?
(vi) Explain whould happen to the economic growth if θ < 1.