Q1. Assume that a "leader country" has real GDP per capita of $40,000, whereas a "follower country" has a real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises 7% in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country?
Q2. China has enforced the one child policy since 1979 to curb its population explosion. Suppose that china population L was growing at the constant rate no before the one child policy; after the introduction population growth drops to the constant rate n1 analyze the effect of this policy using continuous-time Solow model without technical progress.