1a. Suppose the level of technology today (t=0) is equal to 1. Suppose further that the rate of growth of technology, g_a, is 2% per year. What will be the level of technology five years from now i.e., at t=5?

1b. What will have happen to the standard of living, i.e. Y/N, over this 5 year period?

1c. Suppose we were to look at the Solow diagram for this country, where we have y = , k = on the axes. What will this graph look like at t=0 and t=5?

1d. Suppose in part c we instead have y = and k = on the axes. What will this graph look like at t=0 and t=5?

AN K AN N N AN K AN N N