Y = zK0.45 N0.55 Consider the following data: Year Y (billions of 2005 dollars) K (billions of 2005 dollars) N (millior 1995 8745.00 30500.00 122.00 1996 9120.00 31023.90 123.60 1997 9531.30 31992.30...

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Extracted text: Y = zK0.45 N0.55 Consider the following data: Year Y (billions of 2005 dollars) K (billions of 2005 dollars) N (millior 1995 8745.00 30500.00 122.00 1996 9120.00 31023.90 123.60 1997 9531.30 31992.30 125.80 1998 9944.30 32325.50 127.60 1999 10431.60 33127.50 129.50 2000 10663.30 33680.50 127.60 2001 10982.90 34250.90 127.50 2002 11035.55 35162.15 125.41 2003 11123.96 35613.11 125.21 2004 11302.69 36000.60 123.53 2005 11427.35 36715.67 121.73 2006 11593.44 37449.09 119.81 2007 11663.34 37714.94 117.97 (1) Calculate the Solow residual for each year from 1995 to 2007 (hint: don't convert millions to billions or vice versa). (2) Calculate percentage rates of grwoth in output, capital, employment, and total factor productivity for each year from 1996 to 2007. Overall, what factor contributes the least to the growth in aggregate output? Do you see that the 2001 recession makes the growth of GDP slower (in other words, is the growth rate in years 2001-2007 higher or lower than the years 1996-2000)? (Note: use the log-difference to calculate the growth rates)