Problem
1. What determines the amount of investment per worker and capital accumulation in the Solow growth model?
2. What are the two determinants of the steadystate level of capital per worker? Why does capital per worker move to this steady-state level?
3. Beginning from a steady state in the Solow growth model, explain how an increase in the saving rate will affect the levels and growth rates of capital and output per worker.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.