Using the Solow model framework, answer the following questions, AND DRAW! the graph with the correct movement for: A. What would we expect to happen to the capital stock, and thus income, in the event consumer preferences changed and the average savings rate DECREASES for a given country. B. What would we expect to happen to the capital stock, and thus income, in the event birth rates broadly INCREASED.

In the steady-state equilibrium with fixed technology, if the population and labor force are both growing at the rate of two percent per year, the Solow model predicts that: the capital stock will be constant each year. aggregate output will grow at the rate of two percent per year. output per worker will grow at the rate of two percent per year. aggregate output will grow at the rate of one percent per year.

Question 27 Consider countries A and B, with A having a higher population growth rate than B. According to the Solow-Swan model, output per person in A and output per person in B are the same in steady state. Answer True or False. Remember to include your explanation.

when a country adds ideas what is it doing to its productivity and GDP? Which variable in the Solow Model equation is it changing?