Donald trump has proposed policies the he says will

8. Donald Trump has proposed policies the he says will lead to economic growth of 4% a year. Do you think that most
people would notice this? You'll want to use the average U.S. growth rate since 1865 as well as the time it takes a
variable to double in size.
In our "Macroeconomics Supplement" please read "Making It in America" by Adam Davidson. You might note that this
title has two meanings: manufacturing in the U.S. as well as getting ahead economically. We'll use this for the next two
questions.
9. Please explain all the factors that are causing the per-worker production function, as applied to U.S. manufacturing,
to shift up.
10. The article describes how the type of capital used in factories is changing. These changes are designed so that all
workers need less human capital than factory workers in years past. True or false? Please explain your answer.

For the following four questions assume that a country has total factor productivity of 2,500 and K/L = $160,000.
11. Y/L would be what?
12. Say that K/L rose by 10% from the value above. By how much would Y/L rise in percentage terms compared to your
starting answer?
13. Say that instead of K/L increasing that A rose by 10% from its starting value of 2,500 (and K/L is at its original
$160,000). By how much would Y/L rise in percentage terms compared to your first answer (when A was $2,500 and K/L
was $160,000)?
14. Summarizing the last three answers, and assuming that an 10% increase in K/L or in A costs the same amount, what