SOLOW'S MODEL Consider following information from China and New Zealand in table: China 6.5% 11,169 16,655 43.7% Real per capita GDP growth, 2012-2019 (average %) Real GDP per capita, 2012 (in constant 2017 USD) Real GDP per capita, 2019 (in constant 2017 USD) Average savings rate, 2012-2019 (% of real GDP) Capital stock, 2019 (in millions of constant 2017 USD) Population (in millions) Population growth (in %) Capital depreciation rate (in %) 14,283,969 1,434 0.5% 3.0% Production function in both economies has following functional form 1 2 3 Yt = AK³L³ New Zealand 1.6% 32,989 45,555 21.4% 409,160 4.8 1.0% 3.0% Where Yt denotes aggregate GDP in period t, Kt is aggregate capital stock, Lt is employment (assumed equal for whole population) and A is total factor productivity. 1. Find capital stock (k), output (y) and consumption (c) per capita in STATIONARY STATE. Assume that total factor productivity (A) remains fixed at its 2019 level for each country. 2. Find GOLD RULE levels of capital stock (k*), output (y*) and per capita consumption (C*). 3. Assume now that each country decides to apply GOLD RULE SAVINGS RATE. Will welfare increase or decrease after they switch from savings rate in effect in 2019 to GOLD RULE RATE? Calculate per capita consumption (c) that each economy would have achieved if it had applied GOLD RULE SAVINGS RATE.

Productivity and growth policies Consider a hypothetical small island nation in which the only industry is cloud computing. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Year 2039 2040 Physical Capital (Servers) 200 480 Labor Force (Workers) Based on your calculations, productivity from 2039 to 2040. 100 120 Physical Capital per Worker (Servers) Labor Hours (Hours) 4,500 4,200 in physical capital per worker from 2039 to 2040 is asociated with Suppose you're in charge of establishing economic policy for this small island country. Output (TB of data storage) 40,500 75,600 Imposing restrictions on foreign ownership of domestic capital Subsidizing research and development…

> Consider the data in the table below: Per capita GDP, 2017 Saving rate (%) TFP (Ā) United States 1.000 23.5 1.000 Switzerland 1.151 28.8 1.052 Answer the following questions using the Solow growth model. 9. Assuming no differences in TFP (ignore the last column) and no differences in the rate of depreciation between the U.S. and Switzerland, use the data in the table to predict the ratio of per capita GDP of Switzerland relative to that of the U.S. in the steady states. How much percent richer is Switzerland than the U.S. in steady state? 10. Now do the same exercise assuming TFP is given by the levels in the last column. Now how much percent richer is Switzerland than the U.S. in steady state? Consider the data in the table below: Per сapita GDP, 2017

Hi, I'm having trouble answering this Macroeconomics question, please help. Thank you!