In the course of answering this question, explain the concepts of absolute and conditional convergence.

(a) Explain the mechanism(s) through which, according to the Solow model, an initially poor country would be predicted to catch up to the living standards of a rich country. Set out carefully the assumptions that you are making to derive this result.

(b) Now use the model to explain why catch up may not take place.

(c) Comment on the likely validity of the assumptions in

(a) and

(b) when applying the model to the real world.