Assume an Endogenous Growth Model with Labor Augmenting Technology

Multiple Choice

Assume an endogenous growth model with labor augmenting technology.The production function is Y = F(K,AN) , where A = a(K/N) such that y = ak.If the savings rate is s = 0.1, the rate of population growth is n = 0.04, and the depreciation rate is d = 0.02, how much would "a" have to be to achieve a 12% growth rate of output?

A) 0) 6
B) 1) 2
C) 1) 8
D) 2) 0
E) 2) 4