3. During a given interval, a nation’s overall productivity grows at a compounded
rate of 2 percent. Its population growth rate and degree of labor-force participa-
tion do not change over this time span. The nation accumulates new capital at
a compounded rate of growth of 1 percent, and the coefficient governing the
proportionate increase in real GDP production in response to a proportionate
rise in the amount of capital is equal to 0.3. What is the compound growth rate
of real GDP during this interval?