1.) Why might an economic policymaker choose the Golden Rule level of capital? (10 marks)

2.) Might a policymaker choose a steady state with more capital than in the Golden Rule steady state? With less capital than in the Golden Rule steady state? Explain your answers. (10 marks)

3.)In the Solow model, how does the rate of population growth affect the steady-state level of income? How does it affect the steady-state rate of growth? Show with diagram. (10 marks)

4.)Devoting a larger share of national output to investment would help restore rapid productivity growth and rising living standards." Do you agree with this claim? Explain, using the Solow model. (10 marks)