Consider the Solow Growth model
1. If n, d, z, α, s are the same for two country A and country B, but today the level of capital per capita is higher in country A. What does the Solow model predict for the short term growth rate of income per capita for these two countries? What is the prediction for the long term?
2. Does your answer change if the levels of technology are different for both countries, i.e. zA > zB?