1. Assume that the population growth and saving rates of two countries are the same. However, the pace of technological change differs between the two countries.

(a) In a steady state, how do you see per capita income growth in the two countries? Use a growth model to respond to the question.

(b) What will the long-term growth rates of per capita income in the two countries look like?

(c) If the two countries' rates of human capital accumulation differed rather than their rates of technological development, how would your response to (b) change?