Lecture 9 Solow Growth Model and Growth Policy

Question 1

in steady state, find point where:

Answer 1

(d/s)k = T*f(k,h)

Question 2

convergence

Answer 2

poor countries grow faster than rich countries, rGDPs of rich and poor get closer over time

Question 3

if k is below steady state level

Answer 3

k and output grow

Question 4

if k is above steady state level

Answer 4

k and output shrink