a. Show, stating all required assumptions, that the growth rate of efficiency in any
economy can be calculated as (where z = Z/L)
gA = gy - agk - cgz
b. Show that the result in part (a) above implies that the growth rate of efficiency in
Malthusian economies over the long run is given by
gA = cgN
where c is the share of land rents in all incomes, and gN is the population growth rate.