Suppose a country wants to increase its savings rate from 20% to 40% in order to at least double its growth rate of total income. If the Harrod-Domer model is valid, is it going to succeed? Why or why not?
Does the Harrod-Domer model imply convergence between countries like the Solow model?
What is the difference between conditional and unconditional convergence implied by the Solow model?
Suppose Indonesia's GDP per capita in 2006 was $ 1, 590 and it was $3, 379 in 2015. Calculate the average annual growth rate of GDP per capita over this ten year period.
Suppose a country's technology grows at 5% and its population grows at 1%. What is the long-run growth rate of per capita income according to the Solow model if s = 20% and depreciation is 2% ?